GBP/USD rose 1.32%, its highest one-week gain of the year. The upcoming week has four releases, including GDP. Here is an outlook for the highlights and an updated technical analysis for GBP/USD.
In the UK, PMIs for manufacturing, services and construction all came in above the 60-level, well into expansionary territory. A reading above the 50-level indicates growth.
The Bank of England slowed the pace of QE, from 4.4 billion pounds a week to 3.3 billion, but stressed that this was not a tightening of policy. The bank maintained interest rates at a record low of 0.10%.
In the US, manufacturing activity grew at a slower pace in April, as the ISM Manufacturing PMI dropped to 60.7, down from 64.7. It was a similar story for business activity, as the ISM Services PMI slowed to 62.7, down from 63.7. Both PMIs missed their estimates.
The market was looking for a blowout report from nonfarm payrolls for April, with an estimate of 990 thousand. Some analysts had even predicted a print of two million, but in the end, the economy created just 266 thousand jobs. Unemployment rose to 6.1%, up from 5.8% and above the estimate of 6.0%. There was a silver lining, as wage growth climbed 0.7%, rebounding from -0.1% and above the forecast of 0.0%.