GBP/USD: All eyes on UK Manufacturing PMI, Brexit plan

  • GBP/USD stays below 1.2300 ahead of the key day.
  • The UK PM Johnson is expected to reveal secrets of his Brexit plan and while struggling with domestic politics.
  • UK/US Manufacturing PMIs could entertain traders.

Despite a slew of political headlines from the UK during the early Asian session, the GBP/USD pair stays modestly unchanged, while being under pressure, as it takes rounds to 1.2285 ahead of the London open on Monday.

The UK Telegraph’s news release that the Prime Minister (PM) Boris Johnson will reveal his Brexit secret to the EU went largely unnoticed as a speculated leak from the proposals indicate multiple checks to be the solution to the Irish backstop, which was quickly turned down by Ireland’s deputy Prime Minister Simon Convey. Also increasing the downside pressure was the report suggesting the British Supreme Court’s readiness to hear any plea against the Tory Leader Johnson if he refrains from obeying the Benn Bill that pushes him towards requesting Brexit extension.

Further, an issue concerning the PM Johnson’s inappropriate action with a press reporter before a decade exerted additional pressure on the United Kingdom (UK) leader while he is already undergoing charges of conflicting interests when being the London Mayor.

At the domestic front, the opposition seems to divert their attention from a snap election to the Brexit proposal and a referendum, which in turn could magnify lawmakers’ response to the Tory proposal, if revealed after the official communication to the European Union.

On the other hand, the US Dollar (USD) stood strong against the majority of its counterparts amid on-going risk-safety wave and recently upbeat comments from the Federal Reserve officials.

While September month manufacturing activity numbers from the UK and the United States (US) will decorate the economic calendar, issues concerning the Brexit plan, the on-going Conservative Conference and domestic politics at Britain can keep traders busy during the day. The forecast suggests, the UK Manufacturing Purchasing Managers’ Index (PMI) to drop to 47.0 versus 47.4 while the US ISM Manufacturing PMI could increase to 50.0 from 49.1.

Technical Analysis

The pair seems to refrain from much momentum unless clearing 21/50-day SMA range between 1.2365 and 1.2260 levels. However, the bearish signal from the 12-bar moving average convergence and divergence (MACD) increases the odds for further declines to 1.2200 on the downside break. Meanwhile, pair’s sustained run-up beyond 1.2366 could propel prices to 1.2400 and 100-day SMA level of 1.2445.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Bears stepping in below 1.1600, focus on ECB, US GDP

EUR/USD remains under pressure below 1.1600, as the US dollar extends the late Wednesday bids amid broad risk-aversion. Traders turn cautious amid stagflation fears and ahead of Thursday's ECB policy decision and the US Q3 GDP release. 


GBP/USD: Sellers attack 50-DMA on monthly support break

GBP/USD prints a three-day downtrend following the key support break, pressured around 1.3740 during the early Asian session on Thursday. The cable pair broke an ascending support line, now resistance, from September 30 the previous day but refrained from closing below 50-DMA.


Gold remains pressured near $1,800 amid USD recovery

Gold prices surrender the previous session's gains and struggle to defend the $1,800 mark. The US 10-year Treasury yields rebound from the early lower levels to trade at 1.55%, following the upcoming BOJ and the ECB policy meetings on the day.

Gold News

Shiba Inu could surpass Dogecoin after a 700% SHIB price rally in October

Shiba Inu (SHIB) continued its march upward on Oct. 27, with its price hitting a record high of nearly $0.000060 before correcting lower. SHIB rallied by more than 25% to an all-time high of $0.00005959, crossing above its previous all-time high of 0.00005000, according to data from Binance.

Read more

BOJ Preview: Focus on outlook tweaks ahead of general election Premium

Despite the recent depreciation in the yen and rising energy prices, the Bank of Japan (BOJ) is likely to maintain its monetary policy settings on Thursday, as it concludes its two-day monetary policy review meeting.

Read more