- U.K. Manufacturing PMI Falls to an 8-Month Low
- British Pound Falls as Data Crossed the Wires
- Focus Turns to BOE Policy Meeting Next Week
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U.K. Markit PMI Manufacturing s.a. (MAR)
UK Manufacturing PMI fell to 55.3 in March, down from February’s 56.2 and missing expectations calling for a print of 56.7. The outcome marked the lowest pace of factory-sector growth in eight months. However, UK PMI Manufacturing stills remains well above its long run average of 51.4.The British Pound fell against the US Dollar as the data crossed the wires, but the Sterling’s resilience may not be easily undermined by a nominal slowing of factory-sector activity. Sterling traders will look to next week’s Bank of England policy meeting for further volatility. The MPC committee has vocally talked down imminent rate hike possibilities and has even adjusted its forward-guidance regime.
The GBPUSD technical picture shifted from bullish to neutral. Market Analyst David DeFerranti speaks on the neutrality with candlestick analysis and his technical strategy is to remain on the sidelines. He sees indecision at a critical level of 1.6660. This view is not too different from Technical Strategist Jamie Saettele, CMT, who sees a probably pullback as GBPUSD trades into 1.6711/16760 resistance.
GBP/USD 5-minute – using FXCM Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to dmaycotte@FXCM.com.
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