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The fall of the dollar after the terrible US manufacturing PMI continues in a determined fashion. The reduced chances of QE tapering push the dollar lower.

GBP/USD broke above the 1.53 level and already peaked at 1.5374 before making a limited retreat to 1.5354 at the time of writing.

In the case of the British pound, a parallel figure in the UK looks much better for a change: manufacturing PMI in the UK switched from contraction to growth, making the opposite route that the US did.

The series of PMI releases in the UK continues. Tomorrow its the turn of construction. See how to trade the construction PMI with GBP/USD.

The next event is services PMI – this is the most important sector. The rate decision on Thursday is widely expected to be a non-event, as it is the last meeting led by outgoing governor Mervyn King.

For more on the pound, see the GBP/USD forecast. Here is cable in motion:

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