UK Manufacturing PMI falls to 51.9 – GBP/USD follows
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UK Manufacturing PMI falls to 51.9 – GBP/USD follows

Less than a week before the elections, we get yet another disappointing figure: UK Manufacturing PMI falls to 51.9 points,  significantly worse than expected.

GBP/USD slides around 40 pips to 1.5335. It is still within the high range though. Liquidity remains thin.

The manufacturing sector has always been the weakest link in the UK recovery and  is a smaller sector than services. Nevertheless, this score reflects very poor growth. Joining the weak GDP for Q1, it seems that the UK is not on a path to resume its strong growth but too see further slowdown.

Markit’s manufacturing purchasing managers’ index  for April was expected to  stand at 54.6 points, similar to the 54.4 points recorded in March.

GBP/USD was trading a bit higher towards the publication, rising to 1.5380, but off the highs seen a few days ago.

More figures were released at the same time:

  • Net lending to individuals carried expectations for a rise to 2.6 billion. The actual number is 3.1 billion, better than predicted.
  • M4 Money Supply was forecast to rise 0.1%. The  actual number is +0.3%.
  • Mortgage Approvals were predicted to rise from 62K to 63K. The actual figure is 61K.

6 days are left before  the parliamentary elections. The race still seems very tight, with no party making the break. This will captivate markets next week.

The recent rises in cable are related to the US dollar’s weakness on the poor GDP report, and the consequent mini-correction to the comeback of the greenback.

Brits enjoy a  public holiday on Monday, while most of Europe is on holiday today due to May Day.

More:  GBPUSD: Weakens On Correction

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.