1 May 2015
Disappointing UK manufacturing PMI questions growth recovery – MP
FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis and Research at MarketPulse, argues that today’s soft UK manufacturing print suggests the country won’t see a quick recovery from the Q1 slowdown.
Key Quotes
“Month end EUR/GBP (€0.7360) buying yesterday was a prime factor in the Euro’s gains and because of event risk, next week’s U.K election is expected to keep the cross relatively perky.”
“Disappointing data out of the U.K this morning has been lending a helping hand to keep pressure on sterling. Outright, the pound is again eating through the bids at £1.5300 on the back of the U.K manufacturing PMI miss (51.9 vs. 54.6e – the lowest in seven months).”
“A print like this would suggest that the U.K economy wouldn’t be recovering quickly from its surprisingly sharp Q1 slowdown. Digging deeper, the data insinuates that U.K manufacturing is going to have a tough go of it over the coming months – new-orders are sliding, particularly on the export front due to the EUR/GBP underperforming.”
“This is not good news for either Prime Minister Cameron ahead of next week’s election, nor for the “hawks” advocating a U.K rate hike before 2016.”
Key Quotes
“Month end EUR/GBP (€0.7360) buying yesterday was a prime factor in the Euro’s gains and because of event risk, next week’s U.K election is expected to keep the cross relatively perky.”
“Disappointing data out of the U.K this morning has been lending a helping hand to keep pressure on sterling. Outright, the pound is again eating through the bids at £1.5300 on the back of the U.K manufacturing PMI miss (51.9 vs. 54.6e – the lowest in seven months).”
“A print like this would suggest that the U.K economy wouldn’t be recovering quickly from its surprisingly sharp Q1 slowdown. Digging deeper, the data insinuates that U.K manufacturing is going to have a tough go of it over the coming months – new-orders are sliding, particularly on the export front due to the EUR/GBP underperforming.”
“This is not good news for either Prime Minister Cameron ahead of next week’s election, nor for the “hawks” advocating a U.K rate hike before 2016.”