Yet another slowdown in the UK manufacturing sector, with the PMI hitting 51.9 points, lower than expected. Other figures actually beat expectations: consumer credit is up to 1.476 billion, better than 1.3 billion predicted. Mortgage approvals are above 70K, a small beat and mortgage lending is at 3.873 billion, better than 3.7 billion predicted.
GBP/USD is a bit lower, erasing the gains seen towards the publication.
Markit’s manufacturing purchasing managers’ index for the UK was expected to remain mostly unchanged and tick up to 52.8 points in December from 52.7 in November.
GBP/USD began the new year with a tumble, slipping to the 1.46 handle before stabilizing around 1.4760 towards the publication.
Sterling has been under pressure for quite some time, suffering from a shift in expectations regarding a rate hike in the UK. The BOE was expected to move swiftly after the Fed, but recent figures from Britain showed a slowing economy.
This is the first of 3 PMIs. Tomorrow we have construction and the most important release, services, is due on Wednesday.
GBP is struggling also against the euro and especially against the safe haven yen, with the latter rising on the crisis in Chinese stock markets.
More:Â GBPJPY Faces Downside Pressure On Continued Bearishness
