The sterling posted weakening against the US dollar in the midweek. The price stands at some 1.3324. This week was full of economic reports and its start was marked by the April industrial production data in the UK. The report showed a 0.8% decline m-o-m, which spoiled investors taking into account the expected increase of 0.1%. At the same time, the March rate slightly rose by 0.1% m-o-m.
According to the released data, the processing sector posted considerable decline (1.4% down m-o-m after 0.1% decline in March). Production in the construction sector was positive and tried to offset the negative results of other segments, but was not strong enough. In particular, the construction sector recorded an upturn of 0.5% m-o-m, though being below expectations anyway. We can say now that UK producers had faced challenges in April, and it is unclear whether the low results were neutralized in May.
At the same time, the next day the market saw the April labour report for April. As the statistics show, the UK still has an unemployment rate of 4.2%, whereas average salary over 3 months ending in April gained 2.5% (2.6% up earlier). This factor also had an influence on the sterling attractiveness.
With another report, this May brought a decline in jobless rates by 7,700, while in April the figures soared by 28,200. The national currency could grab these results, but the recent reports bungled the job. Specifically, the Justice minister Phillip Lee resigned due to contradictions with the government on the Brexit issue.