News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/ZcSPE0xkvX
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT for insight on London #FX and #CFD trading. Register here: https://t.co/AoM3UvLtcF https://t.co/zKfTmM2Lvn
  • Germany's IFO forecasts - Upgrades 2020 GDP outlook to -5.2% from -6.7% - Downgrades 2021 GDP outlook to 5.1% from 6.4%
  • BoE's Bailey says while negative rates is in the toolbox, this does not imply the BoE would use negative rates $GBP
  • BoE's Bailey says negative rates have been a mixed bag in other countries $GBP
  • BoE's Bailey says the BoE have looked very hard at scope to lower rates further, including negative interest rates $GBP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.45%, while traders in NZD/USD are at opposite extremes with 69.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xwIu29Mfxl
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/qy92JdlDpt
  • BoE's Bailey says labour demand is weak with unemployment higher than its reported number $GBP
  • For those who like their DMAs $GBP https://t.co/N24AeArRdI
GBP/USD Surges as UK Markit Manufacturing PMI hits Ten-Month High

GBP/USD Surges as UK Markit Manufacturing PMI hits Ten-Month High

2016-09-01 09:11:00
Oded Shimoni, Junior Currency Analyst
Share:

Talking Points:

- UK’s Markit PMI Manufacturing at 53.3 versus 49 expected

- “Manufacturers and their clients started to regain a sense of returning to business as usual” says Markit

- British Pound soared on the news versus all other majors, short term outlook here

Learn good trading habits with the “Traits of successful traders” series

The British Pound surged higher versus all other major currencies after today’s Markit/CIPS Manufacturing PMI increased by the joint greatest amount in the survey’s history.

The diffusion index, by Markit Economics, printed 52.3 from the prior reading of 48.3, smashing economist's expectations of a 49.0 figure. The numbers marked a 10-month high.

Looking into the report, Markit said that August saw solid rebounds in the trends in UK Manufacturing output and incoming new orders.

Solid inflows of new work from export sources was aided by the drop in the sterling, while employment rose for the first time in the year-to-date.

Markit said that the depreciation of the sterling was by far the main factor manufacturers cited as supporting the upswing in new export work.

The counter effect of a lower Sterling meant that purchasing costs were higher.

Markit remarked that manufacturers and clients started to regain a sense of a return to “business as usual” following the Brexit downturn.

The figures today were high importance in the context of the Brexit situation. The initial indications from the UK’s economy has shown a mixed bag of readings, with businesses arguably showing more signs of post-Brexit jitters than UK’s private consumer.

In this context, signs of recovery in manufacturing might have been interpreted by the market as going against pre-Brexit worries for an overall solid look to the UK’s economy at this point in time. With that said, question marks still remain about business investments going forward.

Judging by the rise in UK yields at the time the news hit the wires, the data might have scaled back bets on a more dovish BOE posture.

The DailyFX Speculative Sentiment Index (SSI) is showing that about 46.2% of the traders are long at the time of writing, flipping short on the news, apparently trying to pick a top.

You can find more info about the DailyFX SSI indicator here

GBP/USD 5 Minute Chart: September 1, 2016

GBP/USD Surges as UK Markit Manufacturing PMI hits Ten-Month High

--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com

To contact Oded Shimoni, e-mail oshimoni@dailyfx.com

Follow him on Twitter at @OdedShimoni

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES