- The British pound fell after the construction output for June 2021 dropped 1.3% (MoM).
- UK’s industrial production for June 2021 rose 8.3% (YoY), below the previous record of 20.7%.
- Turkey’s retail sales for June 2021 soared 14.4% from the previous month’s decline at 5.5%.
The GBPTRY declined 1.11% as of 7:30 am GMT on August 12, 2021, from the previous day’s close. It rose to a high of 11.9781 but fell to a low of 11.7883, representing a total decline of 1.58% on the trading day.
The British pound fell after the construction output for June 2021 dropped 1.3% (MoM). It was the largest drop in the output since December 2020. In the previous month of May 2021, the output had declined 0.7%. Wall Street analysts had predicted the data to rise to 0.9%.
Investors were also disappointed after the annual analysis of the output showed it failed to beat expectations at 32% when it rose to 30.0% compared to 57.6% recorded in 2020.
According to the UK’s Office of National Statistics (ONS), the decline in the construction output was attributed to reduced repair and maintenance at 4.2%. This decrease was, however, offset by an increase in new work, adding 0.5%.
When compared to the pre-pandemic levels, construction output stood at -0.3% or £39 million, while new work dropped 2.1% or -£188 million. Repair and maintenance as of June 2021 grew 3.1%, or £149 million above the pre-pandemic levels.
UK industrial production
UK’s industrial production for June 2021 rose 8.3% (YoY), below the previous record of 20.7%. It failed to beat analyst projections that hinted production would rise 9.4%. Traders were unimpressed with the monthly figures that rose 0.7% in June 2021 against 0.6% recorded in May 2021.
Manufacturing production failed to beat analysts’ expectations when it rose 0.2% instead of the projected 0.4%. On annual analysis, production had gained 13.9% in June 2021, weaker than the previous record of 28.2%.
Notably, the UK’s trade balance for June 2021 declined to £11.99 billion, failing to beat estimates at £9.10 billion. This decline represented a deficit. The trade deficit as of May 2021 was £9.60 billion.
As of 8:27 am GMT on August 12, 2021, the British pound had lost 0.06% against the Canadian dollar, 0.12% against the Japanese yen, and 0.14% against the US dollar.
Turkey retail sales
Turkey saw its retail sales for June 2021 soar 14.4% from the previous month’s decline at 5.5%.
The increase was supported by a 27.6% increase in non-food sales. Automotive fuels also helped to account for the rise in retail sales at 7.6%. However, there was a 1.3% decrease in sales of foods & drinks (in restaurants and groceries) as well as tobacco.
On annual analysis, the retail sales increased 17.4%, slightly weaker than June 2020 when it scored 27.6%.
Total turnover among industries, trade, and construction rose 9.5% in June 2021.
There was a 6.2% increase in the industry as construction gained 1.9% in the month. Trade output rose 12.2%, while services gained 11.9%.
On annual analysis, the turnover index rose 63.1% in June 2021 against 78.9 recorded in June 2020.
After hitting the resistance at 12.4289, the GBPTRY pair was range-bound from June 4, 2021, to August 5, 2021. The pair formed a throwback that is seeking to establish a downward breakout of 11.5118.
We are likely to see a decline toward the 9.6074 support level if the breakout is confirmed. There is a slight increase in volatility as the 14-day ATR is at 0.1568. The 14-day RSI has also decreased to 53.26 as sellers stepped in.
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