Markit’s purchasing managers’ index for the manufacturing sector was expected to tick up to 54.5 points in March from 54.1 in February. This is the first of a series of 3 PMIs for the United Kingdom.
GBP/USD traded around 1.4820 towards the publication and remains around these levels afterwards. Update: the pair is now falling below 1.38, but this seems to be related to a stronger dollar across the board.
Here is the preview:Â GBP/USD Trading the British Manufacturing PMI
The manufacturing sector has been the weaker link in the recent British economic cycle. However, these ticks up are serve as good news for Britain. We will get the construction PMI tomorrow and the all important services PMI only after Easter.
The pound is becoming more and more influenced by the upcoming UK elections on May 7th. Recent opinion polls still show a tie between the two big parties.
The Bank of England’s next move will be a hike in the interest rates, but this is not expected in the upcoming months, but only late in the year.
More: What Will Happen To USD When The Fed Pulls The Trigger?– HSBC
