UK Manufacturing Production, a key indicator, provides analysts and traders with a snapshot of the strength of the UK manufacturing sector. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Wednesday at 9:30 GMT. Indicator Background The British Manufacturing Production indicator measures the changes in output produced by manufacturers and in the turning of inventory. Manufacturing is a critical sector of the economy, and strong readings are an indication of economic growth. The indicator has been struggling, posting three consecutive declines, all of which missed expectations. The markets are expecting an improvement in the January report, with an estimate of 0.2%. Sentiments and levels The Federal Reserve is unlikely to raise rates in March, but the bias remains towards tightening. This monetary divergence favors the US dollar. Although the US economy has experienced a soft start to 2016, the employment picture is solid, and the most recent Nonfarm Payrolls report was well above expectations. So, the overall sentiment is bearish on GBP/USD towards this release. Technical levels, from top to bottom: 1.4562, 1.4346, 1.4227, 1.4148, 1.40 and 1.3901. 5 Scenarios Within expectations: -0.1% to +0.2%: In such a case, GBP/USD is likely to rise within range, with a small chance of breaking higher. Above expectations: 0.3% to 0.7%: A strong reading could send the pair above one resistance line. Well above expectations: Above 0.7%: The likelihood of a strong expansion in the manufacturing sector is low. Such an outcome could prop up the pound, and a second resistance line might be broken as a result. Below expectations: -0.5% to -0.2%: In such a scenario, GBP/USD could lose one level of support. Well below expectations: Below -0.5%: A sharp contraction would likely push the pair downwards, possibly breaking a second support level. For more about the pound, see the GBP/USD forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next All eyes on BoC rate decision Scott Smith 6 years UK Manufacturing Production, a key indicator, provides analysts and traders with a snapshot of the strength of the UK manufacturing sector. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Wednesday at 9:30 GMT. Indicator Background The British Manufacturing Production indicator measures the changes in output produced by manufacturers and in the turning of inventory. Manufacturing is a critical sector of the economy, and strong readings are an indication of economic growth. The indicator has been struggling, posting three consecutive declines, all… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
