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

UK manufacturing PMI overview

The UK manufacturing PMI for February is due for release today at 0930GMT, and is expected to show that the pace of expansion in the activity to have deteriorated last month. The index is seen coming-in at 55.5 versus January’s 55.9 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 positive surprise in the manufacturing sector activity report would send the spot higher for a re-test of 1.24 handle. On the other hand, a bigger-than expected drop in the PMI reading could knock-off the GBP/USD pair closer to 1.2300 levels and breach of the last would yield a test of Jan-end lows near 1.2250 region.

An upside surprise should rescue the bulls from the ongoing losing streak witnessed in the major; in wake of speculation surrounding another Scottish independence referendum.

 Key notes

GBP/USD confirms a bearish break-out on talks of March Fed rate-hike, manufacturing PMIs eyed

“Market participants on Wednesday will look forward to the release of key manufacturing PMI prints from the US and UK for fresh impetus.”

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.