Release Explanation: The release tries to gauge manager’s expectations from the manufacturing industry by comparing actual sales with sales from last year.

Trade Desk Thoughts: The UK CBI report shows the manufacturing sector remains gloomy about future expectations. The release number came in at -56, the lowest read since September 1980.

Asked about their expectations for output volumes in the next three months, 12% of firms said they expected them to increase, while 56% said they would fall.

A balance of 56% of respondents said that total order book levels were below normal, up from the net 48% of firms in January. This represents the weakest demand for UK manufactured goods since January 1992 (-60%). Export orders fell further below par, with a balance of 49% of firms reporting export order books below normal, which marked a deterioration from January (-39%)

Forex Technical Reaction: The pound is trading 50 pips below the Asian session opening price, despite falling nearly 150 pips overnight. Against the euro, the pound declined 50 pips, weakening for the first time in the last three days.