Greece is still dominating the headlines. However, our focus today also turns to UK Manufacturing PMI, for any potential trades based on the data.
Due:
July 1st, 9:30am BST
Frequency:
Monthly
Period:
June
Prior: 52.0
Expected: 52.5
Low: 51.5
High: 53.0
Description:
This data shows the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry. The survey asks about 600 purchasing manager respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. Above 50.0 indicates industry expansion, below indicates contraction. UK Manufacturing PMI is a leading indicator of economic health. Businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
Summary:
The pound is still the second strongest currency, after the US dollar, since they are expected to raise interest rates in during H2 2016. The pound has seen positive sentiment in recent weeks on the back of hawkish tendencies from two MPC members and stellar average earnings. Due to this bullish sentiment the bias is to the upside for any deviations with this data.
The pound is currently at multi-year highs against many counterparts and this makes it somewhat more risky to buy. Buying after a pullback is more optimal.
Expected Market Reaction:
This is not tier 1 data, therefore any major reaction will occur as a result of a large deviation. A positive deviation may see further upside in the already lofty pound. A negative deviation may see a pullback, which could provide a good buying opportunity.
Take a look at my weekly Forex news events overview here in order to learn more about interpreting the upcoming UK Manufacturing PMI data.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
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