Markit’s manufacturing PMI for the UK in December disappointed with a drop to 57.3 points. It was expected to remain at around the 58.1 score seen in November (revised down from 58.4). This reflects strong growth. The 50 point level separates growth from contraction.
GBP/USD was trading on high ground, at 1.6565 before the publication. It reacted with a drop to 1.6540, before bouncing a bit back.
Cable certainly enjoyed a “Santa rally” that extended into the new year. The pair peaked at 1.6603 before falling back, but it remained in a high range.
More purchasing managers’ indicators will be released. The figure for the manufacturing sector is due tomorrow and services on Monday. See how to trade the construction PMI with GBP/USD.
The UK economy is growing very nicely, and so far, inflation has also moderated. This allows the central bank to remain on hold.
For technical levels, events and analysis, see the GBPUSD forecast.
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