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UK’s Manufacturing Sector Expanded At Its Weakest Pace Since June 2017 In January

For the 24 hours to 23:00 GMT, the GBP rose 0.49% against the USD and closed at 1.4263, brushing off data showing an unexpected drop in Britain’s manufacturing sector.

Data showed that UK’s Markit manufacturing PMI registered an unexpected drop to a level of 55.3 in January, hitting its lowest level in 7 months, indicating that the sector lost momentum after a strong performance in recent months. In the prior month, the PMI had registered a revised level of 56.2, while investors had envisaged for an advance to a level of 56.5.

Other data indicated that Britain’s seasonally adjusted Nationwide house prices rose more-than-estimated by 0.6% MoM in January, compared to a similar rise in the prior month. Market participants had anticipated for a gain of 0.1%.

In the Asian session, at GMT0400, the pair is trading at 1.4272, with the GBP trading 0.06% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.4195, and a fall through could take it to the next support level of 1.4119. The pair is expected to find its first resistance at 1.4313, and a rise through could take it to the next resistance level of 1.4355.

Looking ahead, traders would keep a close watch on UK’s Markit construction PMI for January, due to release in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

GCI Financial
GCI Financialhttp://www.gcitrading.com/
DISCLAIMER : GCI's Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be used as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

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