A slightly better than expected read in the UK manufacturing PMI: 51.9 points against 51.6 expected.The new orders component, which is watched for future developments, is actually down to 52.2 points. Manufacturing remains the weaker sector in the UK economy.
GBP/USD rises from the lower levels it reached before the release.
Among the comments, Markit highlights the strength of the pound as a headwind, especially for sales to the euro-zone.
Markit was expected to report a small tick up in the purchasing managers’ index for Britain’s manufacturing sector.
GBP/USD traded around 1.5620 towards the publication, a bit down from earlier levels.
This is the first of a series of 3 PMIs: tomorrow we have the construction sector and on Wednesday the all important services sector number. Stay tuned for a preview for the latter event.
In the wider scheme of things, the pound has been on the run thanks to elevated rate hike expectations.
More: GBPUSD forex forecast.
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