Pound off session lows vs. US dollar after UK manufacturing data

British pound jumped off session lows against the US dollar on Tuesday after data showed that UK manufacturing production decreased at a smaller pace in April, compared to previous period.

GBP/USD pair slid to session low at 1.5532, after which regained positions to 1.5560 during European morning trade. Support was expected at Monday low, 1.5493, while the cross was to meet resistance at last Fridays highest value, 1.5617.

Earlier today it was reported that Manufacturing Production in United Kingdom fell by 0.5% in April on annual basis, slowing down in comparison with the preceding period 1.4% drop. Preliminary estimates showed a 0.3% decline. In monthly terms, the indicator recorded a 0.2% drop in April, in line with expectations, but confronting the change during March, a 1.1% rise. Manufacturing production contracted for the first time in three months during April, outlining concerns about UK economic outlook.

Another report showed, that the wider indicator, Industrial Production in the United Kingdom also shrank by a lesser rate in April on annual basis, compared to the previous period data, 0.6% against 1.4%. Experts projected a 0.6% decline. In monthly terms, Industrial Production ticked up by 0.1% in April, while the positive change in March was greater, 0.7%.

Meanwhile, speculations that FED will begin to taper its asset purchases continued following last Fridays upbeat US employment data and after ratings agency Standard & Poor’s revised its long-term outlook on the credit rating of the United States from negative to stable on Monday.

Pound was lower versus the euro, as EUR/GBP climbed 0.31% to 0.8537.