The Sterling rose markedly against the US Dollar ahead the report on the UK manufacturing sector. Thought, weaker-than-anticipated data dampened USD/GBP with the exchange rate falling 11 base points or 0.08% initially.
Britain’s manufacturing sector lost some strength in growth momentum last month, as factory activity was held back by common weakness in the country’s economy in preparation for Brexit. The Markit/CIPS reported that the UK Manufacturing PMI fell to 55.3 in January, the lowest level in seven months, but still above the 52.7 long-term average. Relatively strong figures suggested that manufacturing outlook is likely to remain bright on behalf of exports.