Trade Desk Thoughts - U.K. Manufacturing PMI

U.K. Manufacturing PMI Actual 41.0, Expected 45.0, Previous 45.3 (revised from 45.9)

Release Explanation: As an indicator of economic performance the PMI has the ability to easily affect currency valuations as Institutions re-align existing positions, or build new, on the strength of these reports. It measures the activity level of Purchase Managers, they are surveyed on production, employment, inventories, orders, delivery data. The PMI is split into reads on Manufacturing, Service, and Construction industries. A read over 50 denotes growth.

Trade Desk Thoughts: The UK Manufacturing PMI contracted for a fifth consecutive month in September, reflecting some fears that the UK economy may be facing a prolonged recession. According to the PMI report, the 41.0 read shows the manufacturing sector is in the biggest contraction phase since 1998. At the same time, the PMI report shows prices keep climbing, giving further headaches to BoE members

Forex Technical Reaction: The pound moved 20 pips as soon as the release hit the wires. In the overnight session, the pound continued move flat

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