GBP
The Pound had a mixed day on Friday after data showed UK industrial production
barely rose in February as an increase in manufacturing output was offset by a
drop in oil and gas. Total production gained 0.1 percent as energy output
declined 3.8 percent. An increase of 0.3 percent had been forecast by
economists. Manufacturing rose 0.4 percent amid higher car output. The figures
suggest the industrial sector faltered in the first quarter, with output in the

GBP
The Pound had a mixed day on Friday after data showed UK industrial production
barely rose in February as an increase in manufacturing output was offset by a
drop in oil and gas. Total production gained 0.1 percent as energy output
declined 3.8 percent. An increase of 0.3 percent had been forecast by
economists. Manufacturing rose 0.4 percent amid higher car output. The figures
suggest the industrial sector faltered in the first quarter, with output in the
three months through February rising just 0.2 percent. An increase of 0.4
percent will be needed in March to keep production at the level seen in the
fourth quarter. Seven of 13 manufacturing sectors posted gains in February,
with transport equipment, machinery and metals increasing the most. Recent economic
surveys have been mixed. While analysts suggest growth may have accelerated to
0.7 percent from 0.6 percent, British Chambers of Commerce said Thursday the
U.K. lost momentum across all sectors of the economy. 

USD
The Dollar gained across the board last week, this was compounded on Friday
after Federal Reserve Bank of Richmond President Jeffrey Lacker reiterated that
he sees a strong case for the Fed to begin raising short-term interest rates
this summer. “I expect that, unless incoming economic reports diverge
substantially from projections, the case for raising rates will remain strong
at the June meeting,” Mr. Lacker said.
 
The Fed has held its benchmark federal funds rate near zero since December 2008
to stimulate spending and the broader economy. Most officials at the central
bank expect to begin raising rates sometime this year, though the precise
timing of the first rate increase remains uncertain.
 
Mr. Lacker, who is a voting member this year of the rate-setting Federal Open
Market Committee, has been a longtime skeptic of the Fed’s easy-money policies.
He has repeatedly signaled that he favors raising rates at the June 16-17
policy meeting. He said Friday that he is “confident” sluggish U.S. inflation
will pick up toward the Fed’s 2% annual target over time and said the jobs
market now is “well within the confidence bands of any reasonable estimate of
‘maximum employment’,” which is one of the Fed’s mandated goals, along with
stable prices.

Key Announcements
There are no major announcements today. 

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