When is the UK manufacturing PMI and how could it affect GBP/USD?

The UK manufacturing PMI overview

The UK manufacturing PMI is due for release today at 0830GMT and is expected to show that the pace of expansion in the activity slowed down further in March after reaching four-month lows in February. The index is expected to arrive at 51.3 versus 52.0 booked previously.

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 50 pips in deviations up to 1.65 to -2.50, although in some cases, if notable enough, a deviation can fuel movements of up to 80 pips.

How could affect GBP/USD?

At 1.3075, the pair looks set to test the 1.3100 level as the sentiment around the US dollar remains softer amid risk-on market profile. Should the data show a bigger-than-expected drop, the spot could stall the bounce and reverse sharply to test the daily low at 1.3010, below which 1.2978 (2-week lows) could be targeted

However, on a positive surprise, the GBP/USD pair could accelerate the advances and regain the 1.31 handle, above which 1.3130 (10-DMA) could be tested en route 1.3170 (20-DMA).

Key Notes

UK manufacturing PMI and Eurozone inflation in focus – TDS

GBP/USD Forecast: More downside visible below 200-DMA, UK macro data/Brexit vote in focus

Brexit Legalities and Plans for No Deal

About the UK manufacturing PMI

The Manufacturing Purchasing Managers Index (PMI) released by both the Chartered Institute of Purchasing & Supply and the Markit Economics captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the Manufacturing PMI is an important indicator of business conditions and the overall economic condition in the UK. A result above 50 signals is bullish for the GBP, whereas a result below 50 is seen as bearish.