GBP/USD has recovered after upbeat UK PMIs and some dollar weakness. Brexit and coronavirus headlines may shape trading in additional data, Yohay Elam from FXStreet briefs.
“The ‘Boris Bounce’ is alive but not kicking – Markit’s preliminary Manufacturing Purchasing Managers’ Index for February leaped to 51.9 points, indicating a return to growth in the beaten sector. The Services PMI came out at 53.3, a tad below 53.4 and also pointing to growth.”
“Sterling traders remain wary of Brexit, just over a week before official talks on future relations begin. Comments from both officials in Brussels – busy trying to fill the hole Britain leaves in the bloc’s budget – and London, may move markets.”
“In the US, data continues beating expectations. The Philly Fed Manufacturing Index came out at 36.7 points in February, smashing estimates. Markit’s PMIs are due out later on and may extend the positive trend.”
“Coronavirus concerns may also boost the safe-haven US dollar. Confusion about Chinese statistics has led investors to worry about its neighbors – Japan and South Korea. Seoul has reported over 200 cases, including one in a military base.”