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UK Manufacturing PMI beats with 50.1 – GBP unimpressed

The UK manufacturing PMI slightly beats expectations with a climbing back to growth, but only just. Net lending to individuals badly disappointed with 1.6 billion instead of 5.3 expected and 9.2 last time. M4 Money Supply fell by 0.1%, also short from 0.2% expected. Mortgage approvals joined the negative camp with a minor miss with 66K against 68K predicted.

GBP/USD remains around the same range at 1.4480. The pair maintains a tight range.

Markit’s manufacturing purchasing index for the UK was expected to tick up from 49.2 in April to 49.6 in May. Figures under 50 represent contraction. This sector has always been the weaker link in the economy.

GBP/USD was trading at 1.4485 ahead of the publication. Resistance was found at 1.4580 and 1.4650. Support awaits at 1.4440 and 1.4370.

The pound was pounded by two polls showing a momentum in favor of the Leave campaign. Brexiteers have gained some lost ground according to both ORB and ICM polls.

Two more PMIs follow: for the construction sector tomorrow and the most important sector, services, comes on Friday. Economic indicators  are currently playing second  fiddle to the various Brexit/Bremain opinion polls as we are 22 days away from the crucial vote.

More: GBP/USD – the devil’s currency.

GBPUSD technical chart June 1 2016

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.