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
Gold
Mixed
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
British Pound Breaking News: UK PMI Heightens Hawkish Bets, GBP Strengthens Against USD and EUR

British Pound Breaking News: UK PMI Heightens Hawkish Bets, GBP Strengthens Against USD and EUR

Warren Venketas, Analyst

POUND STERLING TALKING POINTS

  • UK PMI bolsters pound.
  • 50bps interest rate hike gains traction.
Advertisement

FUNDAMENTAL BACKDROP

UK PMI’s revealed both sectors (composite) exceeding estimates despite manufacturing coming slightly below forecasts – see economic calendar below. This print comes on the back of significant misses in the eurozone earlier this morning by way of France and Germany.

GBP ECONOMIC CALENDAR

Please add a description for the image.

Source: DailyFX Economic Calendar

Yesterday’s UK inflation print coupled with todays UK PMI numbers may open up the possibility for the Bank of England (BoE) to move towards a 50bps rate hike in the next meeting. The economy may not be teetering just yet and could help in the inflation fight.

TECHNICAL ANALYSIS

Initial market reaction shows GBP bulls coming to the fore as hawkish bets increase on both GBP/USD and EUR/GBP charts respectively.

GBP/USD 5-MINUTE CHART

gbpusd 5 minute chart

Chart prepared by Warren Venketas, IG

EUR/GBP 5-MINUTE CHART

eurgbp 5 minute chart

Chart prepared by Warren Venketas, IG

Contact and follow Warren on Twitter: @WVenketas

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

DISCLOSURES