The UK’s manufacturing sector is rising from the lows, to 53.2 points, reflecting stronger growth. This breaks a losing streak for this small, yet important sector of the British economy.
GBP/USD establishes itself above 1.60. The pair was moving higher already towards the publication and extends its gains. EUR/GBP is now tackling the 0.78 levels, looking to fall below it.
Markit was expected to report a score of 51.5 points in its purchasing managers’ index for the manufacturing sector in October, after 51.6 in September.
GBP/USD traded around 1.60 towards the publication, rising from lows seen earlier.
This is the first out of three PMIs. Manufacturing is clearly the weakest link, construction is on the other end leading the growth trend and services, the biggest sector, is somewhat behind.
The Bank of England makes its decision this week, and no change is expected. These PMIs will likely have a stronger impact on cable.
For more, see the GBPUSD forecast.
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