The pound sterling fell against major currencies after the release of disappointing manufacturing data. The figures indicated a slowdown in the UK’s manufacturing sector, raising concerns among investors.

Impact on Currency Markets

The weaker-than-expected data led to increased selling pressure on the pound, as traders reassessed their expectations for future interest rate hikes by the Bank of England. The prospect of slower economic growth diminishes the likelihood of tighter monetary policy.

Expert Analysis

Analysts suggest that the manufacturing data reflects broader challenges facing the UK economy, including global economic headwinds and uncertainty surrounding Brexit. Some economists predict further downside risk for the pound if economic data continues to disappoint.

• Manufacturing output declined by 0.5% in the last month.
• New orders decreased significantly.
• Business confidence has weakened.

The currency’s performance will likely remain sensitive to economic data releases and any news related to Brexit negotiations.