The UK manufacturing PMI for January is due for release today at 0930 GMT. How would that impact the GBPUSD? Let’s discuss this in the UK manufacturing PMI GBPUSD Impact Analysis.
1 February, GKFX – The UK manufacturing PMI for January is due for release today at 0930 GMT and is expected to show that the pace of expansion in the activity picked-up pace last month, following December’s sharp drop. The index is expected to arrive at 56.5 versus 56.3 booked previously.
UK: Looking for a modest pullback in the January manufacturing PMI – TDS
Market movers today – Danske Bank
UK manufacturing PMI: Expect little change in January – HSBC
Deviation impact on GBP/USD
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 GBPUSD Impact Analysis
Technically, the pair looks to regain the 1.4200 upside barrier, with the upside to gain traction on a better reading, opening doors towards 1.4230 (Jan 31 high), above which next target lies at 1.4250 (psychological levels). Should the data disappoint, the spot could reverse towards the 1.4150 barrier (key support), below which a test of 1.4109 (Hourly 200-SMA) becomes imminent?
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.
This article UK Manufacturing PMI GBPUSD Impact Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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