GBP/USD: Manufacturing PMI above forecasts but still weak – Scotiabank

FXStreet Insights Team FXStreet

Pound Sterling (GBP) is entering the NA session largely unchanged from Monday’s close, a mid-performer among its G10 peers, Scotiabank's Chief FX Strategist Shaun Osborne notes.

GBP little changed on the day

"The manufacturing PMI release came in slightly above expectations at 44.9 (vs. 44.6 prev.) but the levels remain well below the expansion/contraction threshold at 50."

"Comments from the BoE have focused on rising inflation expectations and unexpectedly persistent wage growth. Markets are currently pricing about 20bpts of easing for the May 8 BoE meeting, offering possible support if policymakers shift toward a neutral stance."

"The moderation in momentum reflects the continued consolidation within a one-month range roughly bound between the mid1.28s and levels just above 1.30. Nearer-term price action offers support around 1.2880 and resistance just below 1.30."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD climbs to multi-week tops near 1.1700

EUR/USD rapidly leaves behind four consecutive daily pullbacks, challenging the 1.1700 hurdle in response to the severe sell-off in the Greenback as investors continued to evaluate the Fed’s rate cut and the neutral message from Chief Powell. Next on tap on the docket will be the weekly US labour market report on Thursday.

GBP/USD rebounds following Fed’s third straight rate trim

GBP/USD punched a fresh hole into seven-week highs on Wednesday, rising back into the 1.3400 neighborhood after the Federal Reserve delivered a widely expected third straight interest rate cut. Fed Chair Jerome Powell gave a particularly cautious showing, hinting that the Fed could be poised for another extended “wait and see” period.