UK PMIs Preview: The only way is down

Markit's UK preliminary PMIs are expected to fall in April. The pound may come under pressure even if the figures meet expectations, FXStreet’s analyst Yohay Elam reports.

Key quotes

“The Manufacturing PMI is set to end with the figure dropping to 42 while the services sector is set to dive deeper into depression territory dropping from 34.5 to 29.”

“If the data comes out below expectations, GBP/USD has room to fall as it would reveal growing pessimism among decision-makers. It would also show that the current situation is worse than previously perceived.”

“If the figures meet expectations, they would still be gloomy. Sterling may hold up in its range in the immediate aftermath but fall afterward.”

“Only in case of figures beating expectations, preferably holding up at March´s levels, the pound has room to rise.”