When is the UK manufacturing PMI be released and how does it affect the GBPUSD? Gain insight into the following overview.
April 1, GKFX – The UK manufacturing PMI is due for release today at 08:30 GMT and is expected to show that the pace of expansion in the activity slowed down further in March after reaching four-month lows in February. The index is expected to arrive at 51.3 versus 52.0 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.
How could UK manufacturing PMI affect GBPUSD?
At 1.3075, the pair looks set to test the 1.3100 level as the sentiment around the US dollar remains softer amid risk-on market profile. Should the data show a bigger-than-expected drop, the spot could stall the bounce and reverse sharply to test the daily low at 1.3010, below which 1.2978 (2-week lows) could be targeted
However, on a positive surprise, the GBP/USD pair could accelerate the advances and regain the 1.31 handle, above which 1.3130 (10-DMA) could be tested en route 1.3170 (20-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.
This article was provided 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.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.