Manufacturing PMI in the UK fell from 48.1 to 47.5 points, lower than predictions of no real change. Last month’s figure was revised to the downside – the original report stood on 48.4 points. A score under 50 points represents contraction. This is the 6th consecutive month of scores under 50.
GBP/USD carried high expectations, and is now retreating. The pair rose above 1.6160 just before the publication and is now at 1.6143.
The British economy grew very fast in Q3: 1% according to the preliminary report. However, there are doubts about the strength of the British economy. The leap could be only a one time event related to the Olympic Games.
For more on the pound, see the GBPUSD forecast.
PMIs for China showed improvement in comparison with the previous month, with the official number sitting just above 50 points and the unofficial PMI just below.
Later, ISM will release its manufacturing PMI for the US – it will also serve as a hint towards the elections. See how to trade this event with USD/JPY.
