Britain's industrial sector has recorded its strongest rise in industrial output since last summer, suggesting the UK recovery is gathering further momentum. Manufacturing output surged by 1.0% month-on-month in February, the biggest rise since September 2013. And the third monthly rise in a row. Economists has expected a rise of just 0.3%. On an annual basis, output is 3.8% higher, signalling that the sector has picked up over the last year. Off the back off this news we saw the pound strengthen considerably against the US dollar and the euro.
Further pushing the pound higher in the afternoon session was a report that The International Monetary Fund has raised its forecast for UK growth this year, and expects the British economy to outpace its advanced rivals. The new World Economic Outlook predicts that UK GDP will rise by 2.9% in 2014, up from a previous forecast of 2.5% back in January.
The IMF also admitted has admitted that they seriously underestimated the strength of the UK economy a year ago.
We have the UK trade balance figures released at 9.30am. Later on in the evening we have The Federal Reserve releasing its minutes from its March meeting where they made the decision to reduce monthly bond purchase by a further US$10 billion. These minutes may give some further insight into how the fed justified their decision and what further action they are likely to take in the coming months.
19.00pm – USD – FOMC Minutes.