British Pound Sees a Surge in Volatility

U.K. industrial production unexpectedly grew in June amid stronger than expected output from North Sea oil fields.

On a monthly basis, industrial production grew by 0.50% in June, the Office for National Statistics said, easily topping the consensus forecast of economists polled by The Wall Street Journal of a 0.20% drop.

Separate data from the Office for National Statistics showed the U.K.’s trade deficit swelling to a nine-month high of 4.56 billion pounds in June, from a revised May figure of 2.52 billion pounds.

Imports surged by 3.30% to a record high of 53.95 billion pounds, while export volumes contracted by 0.70% on the month in June to 49.39 billion pounds.

EURGBP pulled back from strong resistance at 0.90800 in Friday morning trade. The pair hit a low of 0.90075 during the previous session.

China's fiscal spending grew at a slower pace in July after recording strong growth in the first half of the year, according to official data released Friday. The Chinese government spent 1.35 trillion yuan ($202.70 billion) in its July fiscal budget, up 5.40% from a year ago, but below the 19.10% increase in June.

The Ministry of Finance said the slower growth last month was largely on account of government front-loading its spending during the first half of the year. Fiscal expenditure soared 14.50% in the first seven months of 2017 compared with the same period a year ago.

Fiscal revenue also increased 11.10% on year in July to 1.65 trillion yuan, buoyed by greater earnings from land sales.

AUDNZD, which is prone to fluctuations in Chinese economic data, is down Friday morning to currently hover around 1.07900.