Britain’s services sector has slowed down in October according to the fresh purchasing managers’ index: the score dropped from 52.9 to 51.3, more than a drop to 51.9 that was expected. The impact on GBP/USD is minimal, as this surprise isn’t so dramatic.
Britain’s construction sector provided an upside surprise by jumping to 53.9 points, whereas it was expected to remain at around 50 – the line separating contraction and expansion.
On the other hand, Britain’s manufacturing sector provided a very depressing outcome with a slide to 47.4, significantly in contraction zone. It was expected to stay above 50.
Global manufacturing is going down: this was seen in China and Europe as well.
GBP/USD is now trading at 1.5930, very similar to the price before the publication. For more on the pound, see the GBP/USD forecast.Get the 5 most predictable currency pairs