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UK Manufacturing Data Beats Forecasts

Published 01/06/2018, 12:14
GBP/USD
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A better than expected reading on the manufacturing sector will come as a pleasant surprise for the BoE, with the PMI reading for May rising to 54.4. The reading is the first to beat consensus forecasts so far this year and ends a run of 3 disappointments in the past 5 releases.

However, the figure itself remains relatively weak in being the third lowest in the past 12 months, but it still represents a beat nonetheless and will raise hopes for next week’s more important services release.

The pound remains slightly lower on the week against the US dollar and is on course for a 6th weekly loss out of 7. You have to go back to last November to find a lower weekly closing price for this pair, although there have been some tentative signs of support in recent days with buyers stepping in to defend the 1.32 handle.

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