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. See our updated Privacy Policy here.

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
Subscribe
Please try again
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • RT @FxWestwater: Asia AM - Australian Dollar Forecast: $AUDUSD May Rise on Chinese Industrial Profits Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/07/26/Australian-Dollar-Forecast-AUDUSD-May-Rise-on-Chinese-Industrial-Profits.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:…
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/c36fpKL4nN
  • 🇰🇷 GDP Growth Rate QoQ Adv (Q2) Actual: 0.7% Expected: 0.7% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2021-07-26
  • 🇰🇷 GDP Growth Rate YoY Adv (Q2) Actual: 5.9% Expected: 6% Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-07-26
  • 🇰🇷 GDP Growth Rate QoQ Adv (Q2) Actual: 0.7% Expected: 0.7% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2021-07-26
  • Heads Up:🇰🇷 GDP Growth Rate QoQ Adv (Q2) due at 23:00 GMT (15min) Expected: 0.7% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2021-07-26
  • Heads Up:🇰🇷 GDP Growth Rate YoY Adv (Q2) due at 23:00 GMT (15min) Expected: 6% Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-07-26
  • (Weekly Technical) Australian Dollar Outlook Still Biased Lower: AUD/USD, AUD/JPY, AUD/NZD, AUD/CAD #AUD $AUDUSD $AUDJPY $AUDNZD $AUDCAD https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/07/25/Australian-Dollar-Outlook-Still-Biased-Lower-AUDUSD-AUDJPY-AUDNZD-AUDCAD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/FlpHFIrQFp
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/XcuZbWNuie
  • The Mexican peso starts the week with a neutral bias despite broad-based U.S. dollar weakness reflected in the DXY Index. Get your market update from @DColmanFX here:https://t.co/pOu7SbQuKi https://t.co/Cmg92SZy5E
UK Manufacturing PMI Rises, BoE Set To Hike Rates

UK Manufacturing PMI Rises, BoE Set To Hike Rates

Martin Essex, MSTA, Analyst

Talking Points

- The purchasing managers’ index for the UK manufacturing sector climbed unexpectedly in October.

- That removes one possible obstacle to the Bank of England increasing UK interest rates tomorrow, as overwhelmingly expected in the markets.

- However, the British Pound is unlikely to benefit as the BoE may well accompany the hike with a dovish commentary on the chances of further monetary policy tightening.

What Does the Fourth Quarter Hold for the Pound, Equities, Oil and Other Key Markets? Find out here

The purchasing managers’ index for the UK manufacturing sector climbed in October, rising to 56.3 from an upwardly revised 56.0 in September and above the expected 55.9. That leaves the way clear for the Bank of England to double the UK’s benchmark Bank Rate to 0.5% tomorrow. However, such a hike – the first since 2007 – is overwhelmingly priced in to the markets, leaving the British Pound vulnerable to profit-taking after the decision.

Earlier, there were further signs of a relatively healthy UK economy, with the Nationwide house-price index release showing an increase of 2.5% year/year in October, higher than both the expected 2.2% and the previous month’s upwardly-revised 2.3%. The British Retail Consortium’s shop-price index was unchanged at minus 0.1% year/year.

That leaves expectations intact that the Bank of England will increase Bank Rate tomorrow. However, the Pound’s response will depend on how many members of its monetary policy committee vote to leave rates unchanged and on whether BoE Governor Mark Carney’s comments after the decision are dovish, perhaps trying to dampen speculation about further rate hikes ahead.

In response to the PMI data, the British Pound strengthened but could well ease back against the US Dollar after trading broadly sideways for most of October and benefiting earlier this week from a comment by the EU’s chief Brexit negotiator, Michel Barnier, that he is ready to speed up the Brexit talks with the UK.

Chart: GBP/USD Five-Minute Timeframe (November 1, 2017)

UK Manufacturing PMI Rises, BoE Set To Hike Rates

Chart by IG

According to IHS Markit, which collates the PMI data, the UK manufacturing sector started the final quarter of the year on a solid footing. Production and new order volumes continued to rise at robust rates, as companies benefited from strong domestic market conditions and rising inflows of new export business. Price pressures remained elevated, however, with rates of inflation in input costs and output charges both accelerating and staying well above historical series averages,” it said.

Markit noted that the headline PMI has now signaled expansion for 15 consecutive months and that the sector looks to be achieving a quarterly rate of expansion close to 1%, although price pressures continue to build.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

Follow Martin on Twitter @MartinSEssex

For help to trade profitably, check out the IG Client Sentiment data

And you can learn more by listening to our regular trading webinars; here’s a list of what’s coming up

Check out our Trading Guides: Several new ones are now available including Forex for Beginners, Building Confidence and Traits of Successful Traders

Like to know about the Traits of Successful Traders? Just click here

Or New to Forex? That guide is here

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

DISCLOSURES