British Pound Hit by Weaker Economic Data

The British Pound is weaker against the US dollar following mixed economic data.

Input prices in the month of September were hot, but output prices were weaker than expected. This indicates that even though oil prices are driving up the cost for raw materials, these higher costs have not been passed onto factories. Part of this may be due to the weakness that we are beginning to see on the factory level. Even though the monthly growth rate of industrial production was stronger than expected, the annualized pace of growth slowed materially. Overall, the latest data indicates the difficult situation that the Bank of England is facing at the moment. Inflationary pressures remain high but economic growth is slowing.
[B]Written By Kathy Lien, Chief Currency Strategist[/B]