Markit’s manufacturing purchasing managers’ index for the UK was predicted to tick up from 56.7 to 56.9 points, remaining in solid growth territory. The 50 point line separates growth from contraction.
GBP/USD was sliding towards the release, getting closer to the round number of 1.67. The pair is now back on the move higher, to 16740.
This is the first of a series of 3 PMIs. Tomorrow we have the construction PMI, which reached outstanding levels and caused some to doubt if the UK recovery is not too concentrated in the housing sector. On Wednesday, the services PMI is expected to have the biggest impact: this is the largest sector in the UK. A small miss last month resulted in a significant dip for cable.
More data: In addition, mortgage approvals surprised to the upside with a rise from 72K to 77K, above 74K expected. M4 Money Supply rose by 0.3%, as expected. Net lending to individuals came out at 2.1 billion, below 2.5 billion predicted.
Support is found at 1.6668 and 1.6618. Resistance is at 1.6770. For more, see the GBPUSD forecast.
Tensions around the Ukraine are causing some jitters in the markets, with the Swiss franc emerging as the big winner from the clouds of war.