When is the UK manufacturing PMI and how could it affect GBP/USD?
The UK manufacturing PMI overview
The UK manufacturing PMI is due for release today at 0930GMT and is expected to show that the pace of expansion in the activity eased in December after reaching two-month tops in November. The index is expected to arrive at 52.5 versus 53.1 booked previously.
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.
How could affect GBP/USD?
At 1.2750, the pair looks set to test the daily lows at 1.2723 as Brexit uncertainty rears its ugly head in 2019's first European trading. Should the data show a bigger-than-expected drop, the spot could breach the last and head for the next support at 1.2700 level.
However, on an upside surprise, the GBP/USD pair could bounce back to the daily high of 1.2775, above which next targets lie at 1.2816 (Dec 31 high) and 1.2850 (psychological levels).
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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.