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 0930GMT and is expected to show that the pace of expansion in the activity cooled-off in January after reaching six-month highs in December. The index is expected to arrive at 53.5 versus 54.2 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 1.3100, the pair looks set to test the daily tops at 1.3115 as the sentiment remains buoyed by the US-China trade optimism. Should the data surprise on the upside, the spot could test the 1.3150 (psychological levels).

However, on a bigger-than-expected drop, the GBP/USD pair could fall back to the daily low of 1.3080, below which the next supports lie at 1.3052 (Jan 30 low) and 1.2986 (20-DMA).

Key Notes

Market themes of the Day: All eyes on the NFP after the USD recovers

UK manufacturing PMI and Eurozone CPI in focus today - TDS

GBP/USD Forecast: Set-up favors potential upside momentum, UK/US macro data eyed

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.