- Industrial production rises at the fastest pace in 7 months
- Capacity utilization reaches a 5-year high
- GBP/USD continues to decline
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US industrial production rose at the fastest pace in seven months, and capacity utilization reached the highest point in 5 years, possibly supporting calls for the Fed to carry through with a taper of quantitative easing.
Industrial production rose by 0.6% in September, beating expectations for production to again rise by 0.4%. Capacity utilization rose to 78.3% in September from 77.9% in the previous month. In 2011, industrial output was measured at 20% of United States GDP, according to the World Bank.
US Dollar traders remain focused on the next possible start to the taper of the Fed’s quantitative easing program, after the FOMC surprised markets by not beginning to taper in September. Fed Chief Bernanke expressed concerns in September about the job market; therefore economic conditions are affecting estimates for the start of the taper. The median expectation of Bloomberg surveyed analysts is for the Fed to begin tapering in March of next year.
While there was no immediate reaction in Forex markets to the better than expected industrial releases, the US Dollar continued a rally against the British Pound from earlier in the London session. GBP/USD may next find support by a weekly low at 1.6115.
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GBP/USD 1-Minute: October 28, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .
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