When is UK manufacturing PMI and how could affect GBP/USD?

UK manufacturing PMI overview

The UK manufacturing PMI for March is due for release today at 0830GMT, and is expected to show that the pace of expansion in the activity to have improved slighlty last month. The index is seen coming in at 55.1 versus February’s 54.6 reading. 

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 50 pips in deviations up to 1.65 to -2.50, although in some cases, if notable enough, a deviation can fuel movements of up to 80 pips.

How could affect GBP/USD?

A negative surprise in the manufacturing sector activity report would send the spot further south for a test of 1.25 handle. On the other hand, a better PMI reading could send the GBP/USD pair back towards key resistance located near 1.2600 levels.

Key notes

UK: Scope for a small gain in Manufacturing PMI for March - TDS

“We expect 54.8 consensus 55.  Big challenges lay ahead for UK industry, and while the depreciation in sterling has helped boost output in the sector over the last year or so, businesses remain anxious about Brexit.”

About UK manufacturing PMI

The Manufacturing Purchasing Managers Index (PMI) released by both the Chartered Institute of Purchasing & Supply and the Markit Economics captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the Manufacturing PMI is an important indicator of business conditions and the overall economic condition in UK. A result above 50 signals is bullish for the GBP, whereas a result below 50 is seen as bearish.