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British Manufacturing PMI dropped to 45.9, much worse than expected. Early expectations were for a score of 49.7 points.

GBP/USD was already trading at low ground, at around 1.5350 before the publication, and it dropped to under 1.53 immediately afterwards, getting close to critical support.

According to the initial publication, manufacturing PMI fell to 50.5 in April , just above the 50 point mark separating between growth and contraction. This was now revised to 50.2 points.

The market storms in May certainly had their impact, which is felt in the mood of purchasing managers, also outside the euro-zone.

The troughs seen in October were around 1.5270, and the year to date low was a quick swing to 1.5234 seen in January. For more on the pound, see the GBP/USD forecast.

Such figures certainly raise the chances of more quantitative easing in Britain. In the recent inflation report, BOE Governor Mervyn King expressed great concern about the impact of the euro-zone unraveling about the British economy and certainly left the door open for more QE.