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 0830GMT and is expected to show that the pace of expansion in the activity slowed down sharply in April after reaching thirteen-month highs in March. The index is expected to arrive at 53.0 versus 55.1 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 fresh two-week highs of 1.3059 amid renewed USD selling, the pair looks to test the 1.31 barrier, as the bulls eagerly await the UK data for fresh impetus amid holiday-thinned markets.

Should the data show a bigger-than-expected drop, the spot could change its course fall sharply to test the 1.3000 round number, below which 1.2971/69 (5, 200-DMA) could be targeted

However, on a positive surprise, the GBP/USD pair could accelerate the advances and regain the 1.3091 50-DMA, above which 1.3121 (Apr 15 high) could be tested en route 1.3150 (psychological levels).

Key Notes

UK: Manufacturing PMI likely to decline to 53.5 in April - TDS

GBP/USD Analysis: Rallies beyond 1.30 mark, through 1-1/2 month old descending trend-line ahead of FOMC/BoE

GBP futures: upside could take a breather near term

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.