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British manufacturing PMI rose to 54.6 points. It was expected to advance from 52.5 to 52.8 points in July. Manufacturing is only a small portion of the UK economy, but the figure, showing solid growth, is quite encouraging.

GBP/USD was recovering from the lows, rising from 1.5135 to 1.5160 before the publication. The pair is now tackling the 1.52 line.

This is the first PMI in the series: the construction and services figures will be released in the upcoming days. Recent figures from the UK have been quite positive. Most notably, Q2 growth was 0.6% in the first release.

The big event of the day is the rate decision of the Bank of England. While the forward guidance is expected to wait for the BOE Inflation Report, due on August 7th. Positive figures together with inflation that is just under 3%, limit the central bank in a possible expansion of more QE.

More:  BOE may try insulating Britain from tapering headwinds