Markit UK PMI Surveys Preview: Sterling to get a lift on a strong recovery

June manufacturing PMI is forecast to be 45 after 40.7 in May while Services PMI is to rise to 39.5 from 29 in May and 13.4 in April. Sterling, which is failing -0.11% against USD to 1.2455, could benefit from stronger June PMI surveys, FXStreet’s analysts Joseph Trevisani reports.

Key quotes

“Manufacturing PMI is forecast to climb to 45 from 40.7 in May and 32.6 in April while the index for services is expected to rise to 39.5 in June from 29 in May and 13.4 in April.” 

“Though neither index is projected to move into expansion the farther the distance from the April lows the more secure markets will be that the pandemic collapse was a vicious but temporary contraction unlikely to bring on an extended recession.”

“Markets are waiting to be convinced the economic catastrophe that overtook the UK economy in March and April reversed in May and that the climb from the pit is proceeding apace. Consumers have played their part, these PMI numbers will tell if businesses have received the message. The sterling and FTSE are waiting for the answer.”