The British manufacturing sector has improved nicely. The purchasing managers’ index jumped to 49.6 points, much better than a drop to 47.4 that was expected.
This is still in contraction zone: under 50 points, for the third month in a row.
GBP/USD shrugs it off and remains around 1.5570, where it traded before the publication.
This is the first in a series of PMIs lined up this week. Tomorrow, construction PMI provides a trading opportunity. See how to trade this event with GBP/USD.
On Thursday, Services PMI is released. Recent global PMI figures came out better than expected: China and India saw their manufacturing PMIs rise above 50 points in December, returning to growth. Later in the day, this figure will be released in the US.
Britain faces a tough year as austerity measures still weigh on the economy, as well as the situation in the euro-zone.
For more on the pound, see the GBP/USD forecast.Get the 5 most predictable currency pairs