GBP/USD: BoE in focus, UK data miss - Scotiabank

Analysts at Scotiabank explained that the UK reported a narrower trade deficit for Feb but it was the weaker industrial and construction output data (at +0.1% M/M and –1.6% M/M, for a second consecutive large M/M fall, respectively) that disappointed market participants and trimmed GBP gains from 1.42+. 

Key Quotes:

"The data reflect poor weather—from which the economy will recover—but do imply a sizeable marking down in Q1 growth momentum when the first estimate is released at the end of the month."

"We think BoE policy makers should look through temporary, weather-related weakness in the economy as they consider raising rates in May."

"Note Broadbent speaks overnight."