GBP/USD stays below 1.23 after UK Sept Manufacturing PMI rebounds to 48.3

The UK manufacturing sector activity contraction unexpectedly slowed in the month of September, the latest survey report from IHS Markit showed this Tuesday. 

The seasonally adjusted IHS Markit/CIPS UK Purchasing Managers’ Index (PMI) jumped to four-month highs of 48.3 in September versus 47.0 expected and seven-year lows of 47.4 seen in August.

Key Points:                

New orders, output and employment fall further

Purchasing and input stocks rise as Brexit preparations restart.

Rob Dobson, Director at IHS Markit, commented on the survey:

“The UK manufacturing downturn continued in September, adding to signs that the sector may be sliding into recession. Output, new orders and employment all fell further as rising political, trade and economic uncertainties exacerbated concerns about Brexit.”

“Some manufacturers noted increased inventory building activity in preparation for the forthcoming exit date, but the impact of such Brexit-related stock building was dwarfed by weakening demand for other customers, due in part to clients routing supply chains away from the UK.”

FX Implications:

A positive surprise in the UK Manufacturing sector activity data fails to lift the sentiment around the pound. The Cable keep its recovery from three-week lows of 1.2263 capped below the 1.2300 level on the data release.

The GBP markets remain confused after the UK PM Johnson brushed away criticism of leaked plans to manage the Irish border after Brexit. Also, markets refrain from placing any directional bet on the pound ahead of PM Johnson’s new Brexit plan announcement.

GBP/USD Levels to consider


Today last price 1.2285
Today Daily Change -0.0018
Today Daily Change % -0.15
Today daily open 1.2292
Daily SMA20 1.2369
Daily SMA50 1.2262
Daily SMA100 1.2449
Daily SMA200 1.273
Previous Daily High 1.2348
Previous Daily Low 1.2275
Previous Weekly High 1.2504
Previous Weekly Low 1.2271
Previous Monthly High 1.2583
Previous Monthly Low 1.1958
Daily Fibonacci 38.2% 1.2303
Daily Fibonacci 61.8% 1.232
Daily Pivot Point S1 1.2262
Daily Pivot Point S2 1.2232
Daily Pivot Point S3 1.2189
Daily Pivot Point R1 1.2334
Daily Pivot Point R2 1.2377
Daily Pivot Point R3 1.2407



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