U.K. Manufacturing PMI Unexpectedly Increases In March

U.K. Manufacturing PMI Actual 39.1, Expected 34.9, Previous 34.7

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 Purchasing Managers, who 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 U.K. Manufacturing PMI unexpectedly rose in March, after posting the second weakest read in its recent history, in February. Despite the better than expected read, weaker global demand still outweighs any benefit from sterling's fall against major currencies, and domestic conditions were especially poor due to the crises affecting car making, construction and retail.

Forex Technical Reaction: The pound traded on strong momentum during the European session, unlike the other major pairs that barely moved. The pound rose 80 pips against the dollar, and 70 pips against the euro.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.