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UK Manufacturing PMI: 57 in May – GBP/USD erases early

UK manufacturing PMI stands at 57 points in May, within expectations. GBP/USD was sliding just before the publication, only to recover immediately afterwards. Markit’s purchasing managers’ index for the manufacturing sector was expected to show s minor slide from 57.3 to 57.1 points in May. This is the first of a series of 3 PMIs.

GBP/USD traded around 1.6750 towards the publication but dropped to 1.6724 just minutes before the release. The “sigh of relief” sent it back towards 1.6750. — more coming —

Additional figures were released in the UK at the same time:  net lending to individuals was expected to print 2.7 billion but disappointed with 2.4 billion. M4 money supply was predicted to rise by 0.3% but actually dropped by 0.2%. Mortgage approvals to slide to 64K but  slid to 63K.

The PMIs are likely to have the biggest impact on the pound this week and  overshadow the rate decision, which usually turns into a non-event. Sterling suffered a downfall after Pfizer pulled its offer to acquire AstraZeneca.

Low support awaits at 1.668.  Immediate support appears at 1.67 and resistance at 1.6770. For more, see the GBPUSD prediction.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.