When is the UK manufacturing PMI and how could it affect the GBPUSD pair? Find the answer in the following 3 September GBPUSD Impact Analysis.
3 September, OctaFX – The UK manufacturing PMI is due for release today at 0830GMT and is expected to show that the pace of expansion in the activity slowed further in August after July’s drop to 3-month lows. The index is expected to arrive at 53.8 versus 54.0 booked previously.
Deviation impact on GBPUSD
Readers can find FX Street’s proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 50 pips in deviations up to 1.65 to -2.50, although in some cases, if notable enough, a deviation can fuel movements of up to 80 pips.
UK manufacturing PMI: 3 September GBPUSD Impact Analysis
At 1.2913, the pair looks set to break below the 1.2900 demand zone amid renewed Brexit concerns after the UK PM Theresa May ruled out a second Brexit referendum.
Should the data show a bigger-than-expected drop, the spot could extend the losses to test the Aug 29 lows and 20-DMA at 1.2846, below which the next support lies at 1.2800 (round number).
However, on a positive surprise, the GBPUSD pair could rebound to 1.2967 (5-DMA), above which next target lies at 1.2997 (50-DMA).
About the UK manufacturing PMI
The Manufacturing Purchasing Managers Index (PMI) released by both the Chartered Institute of Purchasing & Supply and the Markit Economics captures business conditions in the manufacturing sector.
As the manufacturing sector dominates a large part of total GDP, the Manufacturing PMI is an important indicator of business conditions and the overall economic condition in the UK. A result above 50 signals is bullish for the GBP, whereas a result below 50 is seen as bearish.
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