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

The 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 eased further last month, following January’s sharp drop. The index is expected to arrive at 55.0 versus 55.3 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?

Technically, the GBP/USD pair looks vulnerable below the 1.3750-40 support area. Should the data show a bigger-than-expected drop, the spot could head towards the 1.37 handle, below which a test of 1.3606 (100-DMA) becomes imminent. However, on a positive surprise, the recovery momentum could gain traction, opening doors towards 1.3807 (daily pivot), above which next target lies at 1.3857 (Feb 22 low).

Key Notes

UK: Manufacturing PMI to fall to 54.3 in February - TDS

UK: Key economic data ahead – Nomura

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.