The UK manufacturing sector is getting closer to contraction: a score of 50.8 points reflects very slow growth, and this was worse than expected. Britain is not alone: slowdowns have been seen also in China, the US and the euro-zone.
GBP/USD is extending its falls to 1.3910
The UK manufacturing sector was expected to suffer a small slowdown in February: a slide from 52.9 to 52.2 points in Markit’s manufacturing purchasing managers’ index.
GBP/USD traded around 1.3945 before the release, sliding from the highs.
The pound is still struggling with the chances of an exit from the European Union. The so-called “Brexit” is now seen as a threat not only to the UK but also to Europe and the whole world, according to the G-20 Summit.
Nevertheless, sterling made some attempts to recover, but this figure certainly weighs heavily on the pound. We are seeing the pound lose ground also to the euro, with EUR/GBP recapturing 0.78 and to the yen, with GBP/JPY sliding to 157.50.
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