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 accelerated in November after October’s drop. The index is expected to arrive at 51.5 versus 51.1 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 1.2809, the pair looks set to break above 1.2853 (Nov 29 high) as Trump-Xi trade ceasefire agreement boosts the risk sentiment further in Europe. Should the data show an unexpected drop, the spot could stall its upside and ease back below 1.2746 (daily pivot), below which the next support lies at 1.2726 (Nov 27 low).

However, on a better figure, the GBP/USD pair could extend the rally to the Nov 29 high, above which next targets lie at 1.2921 (Oct 25 high) and 1.2944/51 (50 and 100-DMA).

Key Notes

Market themes of the Day: Manufacturing PMIs in Europe and the US ISM index headline

GBP futures: cautious tone poised to prevail

GBP/USD Forecast: Brexit uncertainties to keep a lid on any meaningful recovery attempts

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.