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UK manufacturing PMI misses with 54.3 – GBP falls

A significant slowdown in the UK manufacturing sector according to Markit. The manufacturing PMI drops from 56.3 to 54.3 points in June. A weaker pound helped the small sector. Did the recent strength of Sterling dampen the mood?

GBP/USD extends the drops it had already begun before the release, hitting a new low of 1.2968. Support awaits at 1.29. Was the data leaked?

Markit’s manufacturing purchasing managers’ index was expected to tick down from 56.7 to 56.4 points in June. This is the first PMI out of three, with construction tomorrow and services report on Wednesday.

GBP/USD was trading just under 1.30 ahead of the publication, selling off some of the gains seen last week as the US dollar was recovering.

The gains that the pound enjoyed last week came from Carney: the governor of the BOE suddenly became hawkish on interest rates.

The British press reports about a softer stance from the government on the Brexit talks. The more moderate camp led by Phillip Hammond seems to have the upper hand, at least for now.

The government won a vote of confidence last week and seems quite stable.

 

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.