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 slowed down further in February after reaching three-month lows in January. The index is expected to arrive at 52.0 versus 52.8 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 1.3250, the pair looks set to test the Wednesday’s low of 1.3233 as the sentiment around the US dollar remains buoyant amid upbeat US GDP figures and Powell’s comments. Should the data show a bigger-than-expected drop, the spot could test the next supports placed at 1.3200 (round number) and 1.3172 (classic daily S3).

However, on a positive surprise, the GBP/USD pair could swing back to the daily pivot of 1.3279, above which the 1.3300 level could be tested en route 1.3351 (7-month tops).

Key Notes

Market themes of the Day: The economic activity set to bottom up in the Eurozone PMI

GBP/USD Analysis: Corrects from multi-month tops, downside seems limited amid hopes of delayed Brexit

Eurozone inflation and UK manufacturing PMI amongst market movers today – Danske Bank

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.