British Pound Jumps as UK Manufacturing PMI Beats Expectations
- GBP/USD benefits from a stronger than predicted UK manufacturing purchasing managers’ index before easing back.
- That should support overall UK economic growth.
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The IHS Markit/CIPS purchasing managers’ index for the UK manufacturing sector jumped to 56.9, a four-month high, in August from an upwardly-revised 55.3 in July, easily exceeding the 55.0 consensus forecast in a poll of economists.
The data, which showed broad-based expansion across all product categories, suggest continuing healthy UK economic growth and lifted the British Pound, although it quickly lost some of its gains as traders waited for the US non-farm payrolls data.
Chart: GBP/USD Five-Minute Timeframe (September 1, 2017)
“At the moment, the survey data suggest that the manufacturing economy remains in good health despite Brexit uncertainty, and should help support on-going growth in the economy in the third quarter, which will add fuel to hawkish policymakers’ calls for higher interest rates,” commented Rob Dobson, director at IHS Markit.
--- Written by Martin Essex, Analyst and Editor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.