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UK GDP matches forecasts, but other data less impressive- GBP/USD holds

The UK April GDP data has just been released. As noted here earlier, the markets were expecting further evidence, that the UK economy is bouncing back. Well, that  has been pretty much what we got, with the 3 month GDP reading at 0.7% in April. However, the latest industrial and manufacturing data was not very good. Industrial production actually fell on an annualised basis in April and and more so in the monthly reading. Manufacturing fell even harder (-1.4%) on the month and the trade balance widened significantly. The one bright spot was perhaps the index of services, which beat on forecasts. The reaction in the Pound has not been negative right now though, but at the same time it is hard to extrapolate much in the way of positivity from any of this data. The GBP/USD is currently trading at 1.2746
 

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