When is UK manufacturing production and how could affect GBP/USD?

UK manufacturing production Overview

The UK industrial and manufacturing production data for the month of March are scheduled for release at 08.30 GMT in the European session ahead.

The manufacturing production, which makes up around 80% of total industrial production, is expected to rebound to 0.0% on monthly basis in March, against a -0.1% contraction seen in Feb. Meanwhile, the total industrial production is also seen rebounding somewhat to show a -0.3% decrease m/m in March, as compared to a -0.7% contraction recorded previously.

On annualized basis, both the industrial and manufacturing production are expected to decline in March.

Deviation impact on GBP/USD

 Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 20 and 35 pips in deviations up to 1.5 to -2.2, although in some cases, if notable enough, a deviation can fuel movements of up to 60 pips.

How could affect GBP/USD?

The event may not a significant impact on the GBP markets, as the main market moving event for today remains the BOE monetary policy decision accompanied by the quarterly inflation report (QIR).

Better-than expected data could provide fresh impetus to the GBP bulls, which could lift the rate above 1.2950 for a while. However, GBP/USD could drop to test 1.2900 levels, should the data show a negative surprise in the industrial and manufacturing sector activity.

Key notes

GBP/USD Forecast: at a critical juncture ahead of BoE Super Thursday

“On the economic data front, the UK Manufacturing and Industrial Production data are due for release but seems more likely to be overshadowed by BoE's Super Thursday.”

About UK manufacturing production

The Manufacturing Production released by the National Statistics measures the manufacturing output. Manufacturing Production is significant as a short term indicator of the strength of UK manufacturing activity that dominates a large part of total GDP. A high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or bearish).