When is UK manufacturing PMI and how could affect GBP/USD?

UK manufacturing PMI overview

The UK manufacturing PMI for April is due for release today at 0830GMT, and is expected to show that the pace of expansion in the activity eased slightly, when compared to last month’s solid figures. The index is seen coming in at 56.5 versus March’s 57.3 reading. 

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?

A worse-than expected UK manufacturing PMI report could send the spot further south for a test of 1.28 handle, below which doors open for a test of multi-week troughs of 1.2770 (confluence of 38.2% Fibonacci retracement level of 1.2365 to 1.3047 latest up-move and 50-DMA). On the other hand, an upside surprise could send the GBP/USD pair back above 1.29 handle, paving way to reach the horizontal resistance placed near 1.2965/70 region.

Key notes

UK: Manufacturing PMI to hold onto last month’s gains - TDS

UK: Markit/CIPS PMIs could be quite influential for sentiment – RBC CM

About 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 UK. A result above 50 signals is bullish for the GBP, whereas a result below 50 is seen as bearish.