The pound that strengthened slightly against other major currencies in early European deals on Wednesday pared its gains after the release of the U.K. industrial production report at 4:30 am ET. The pound plummeted to a 9-day low against the euro and the franc and hovering near an 8-day low against the dollar.
Industrial production in the U.K. fell unexpectedly by 0.4% in January from the prior month, a report from the Office for National Statistics showed today. Economists were expecting a 0.3% monthly growth for January after recording 0.5% increase in December.
Annually, the index of production fell 1.5% in January, smaller than December's 3.7% decrease. But the decline was larger than the expected 0.8% drop.
At 4:35 am ET Wednesday, the pound fell to a 9-day low of 1.6029 against the Swiss franc. The next downside target level for the pound is seen at 1.60. The pound-franc pair that closed yesterday's deals at 1.6128 is presently worth 1.6040.
At the same time, the pound slipped to a 9-day low of 0.9126 against the euro, breaching an 8-day low of 0.9105 hit at 3:00 am ET. On the downside, 0.915 is seen as the next target level for the UK currency. The euro-pound pair is currently worth 0.9117, compared to 0.9073 hit late New York Tuesday.
The German trade balance for January, final CPI report for February, French and the Italian industrial production for January, which were released today likely influenced the euro.
The pound dropped against the dollar after hitting a high of 1.4963 at 4:20 am ET Wednesday. As of now, the pound-dollar pair is worth 1.4910, compared to an 8-day low of 1.4888 hit at 3:10 am ET. The pair closed yesterday's deals at 1.4998.
From the U.S., the wholesale inventories report for January and the monthly budget statement for February have been slated for release in the North American session today.
The pound that slipped to 133.97 against the yen at 3:00 am ET Wednesday rebounded thereafter and reached a high of 135.24 by about 4:20 am ET. But the UK currency fell again thereafter and is now worth 134.63. The pound-yen pair was worth 134.96 at yesterday's close.
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