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

UK manufacturing PMI overview

The UK manufacturing PMI for July is due for release today at 0830GMT, and is expected to show that the pace of expansion in the activity steadied last month, when compared to June’s awful numbers. The index is expected to remain unchanged at 54.3 in July.

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?

Technically, the pair remains on track for a test of 1.3250 (psychological levels/ Sep 16 high), which could open doors towards 1.3345 (Sep 12 high), should the data deliver a positive surprise. In case of a disappointing result, the downside opens up towards 1.3050 (key support), below which the next supports are aligned at 1.3000 (Jul 26 low) and 1.2950 (Jul 21 low). 

Key notes

GBP/USD Forecast: bullish move to extend till 1.3280, manufacturing PMIs eyed

Haresh Menghani, Analyst at FXStreet notes, “the UK manufacturing PMI is due for release during European session, while the release of ISM manufacturing PMI would be in focus later during early NA session.” 

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.