UK Manufacturing PMI jumps – GBP/USD approaches 1.56

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The purchasing managers’ index for the British manufacturing sector jumped to 57.2 points, indicating strong growth. It was expected to advance from 54.6 to 55.2 points in the month of August 2013. This is the highest score since the spring of 2011 – almost two and a half years.

GBP/USD was trading higher towards the publication, at 1.5550, after breaking above 1.55 at the wake of the new week. The pair jumped to a high of 1.5592. EUR/GBP continues falling, and it is now trading at 0.8474.

The gaps between the economies of the UK and the euro-zone are becoming somewhat more pronounced in the value of EUR/GBP. The euro-zone manufacturing PMI stands at 51.4: 6.8 is a big difference, reflecting a gap between strong and weak growth.

The UK economy has seen positive signs of late, with strong PMIs in Q3 and strong growth in Q2. However, the Bank of England pledged to keep low rates in order to support the economy.

This is the first of three PMIs. The next one is at the same time tomorrow. See how to trade the Construction PMI with GBP/USD.

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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.

7 Comments

  1. Did you notice the 40/50 pips move at 04.29 ? one minute before the report release………surely some report leak. This is not the first time that this happens.

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