Sterling dips against dollar following mixed UK data

AppId is over the quota
AppId is over the quota

Spread betting provider City Index takes a look at the financial activity shaping the markets on 11th October 2011.
Sterling (GBP) has dipped against the US dollar (USD) this morning (October 11th), following reaction to mixed data on UK economic output.

At 11:42 BST, Bloomberg noted that GBP had fallen to trade at $1.5632 - a drop of 0.2275 per cent.

The fall came against the backdrop of reaction to UK output data for August that showed industrial output up 0.2 per cent but manufacturing output also down 0.3 per cent.

This latest drop has also been influenced by yesterday's markets, which saw the pound trading at $1.5689, the highest rate for nearly two weeks and ample reason for investors to sell.

Despite this, the economic data and recent round of quantitative easing left many investors uncertain over current monetary policy in the UK.

Danske Markets chief analyst John Hydeskov expressed his concerns in the wake of the output data, during an interview with Reuters.

"The data was a mixed bag…overall the trend is still for lower production and that should really not benefit the pound," he said.

Elsewhere, the Euro was trading at 87.05 pence flat against the pound.

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SOURCE : http://goarticles.com/article/Sterling-dips-against-dollar-following-mixed-UK-data/5489817/