When is the UK manufacturing PMI and how could it affect GBP/USD?

The UK manufacturing PMI overview

The UK manufacturing PMI for December is due for release today at 0930GMT and is expected to show that the pace of expansion in the activity eased last month, following November’s positive surprise. The index is expected to arrive at 58.0 versus 58.2 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?

Technically, the pair remains on track to conquer 1.3550 upside barrier, with the upside to gain traction on a positive surprise, opening doors for towards 1.3570 (daily classic S2/ Fib R3), above which next target lies at 1.3600 (natural resistance). Should the data show a bigger-than-expected drop, the spot could reverse towards the 1.3500 barrier (key support), below which a test of 1.3478 (5-DMA) becomes imminent.

Key notes

GBP/USD: Bulls target 1.3550 ahead of UK manufacturing PMI?

UK and European manufacturing PMIs amongst market movers – Danske Bank

GBP/USD Forecast: move towards 1.36 mark seems a distinct possibility, UK manufacturing PMI 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.