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UK CBI Industrial Order Expectations Actual -56, Expected -50, Previous -57
Release Explanation: The release tries to gauge manager’s expectations from the manufacturing industry by comparing actual sales with sales from last year.
TheLFB-Forex.com Trade Desk Thoughts: The UK CBI report shows the manufacturing sector’s future expectations remain gloomy. The release number came in at -56, slightly better than the previous month. However, the report also notes that some manufacturing firms expect output to pick up in the coming period, an important improvement from the previous months.
Demand for UK-made goods remains weak with 10% of firms reporting above normal total order books in May, while 66% said they were below normal. The resulting balance of -56% is broadly unchanged from each of the previous three months.
Export order books remain below par this month, despite the relative weakness of the pound. 12% of firms said they were above normal, 58% said they were below normal, giving a balance of -46%.
Forex Technical Reaction: The pound is struggling to break above the high reached on Tuesday. Overall, the currency market currently lacks the momentum required to pull such a move.
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