UK Manufacturing PMI – Forex News Trading

Posted On 01 Jul 2015

By : Jarratt Davis

Comment: 0

Tag: Forex news

Greece is still dominating the headlines. However, our focus today also turns to UK Manufacturing PMI, for any potential trades based on the data.

Due:
July 1st, 9:30am BST

Frequency:
Monthly

Period:
June

Prior: 52.0
Expected: 52.5
Low: 51.5
High: 53.0.

Description:
This data shows the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry. The survey asks about 600 purchasing manager respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. Above 50.0 indicates industry expansion, below indicates contraction. UK Manufacturing PMI is a leading indicator of economic health. Businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

Summary:
The pound is still the second strongest currency, after the US dollar, since they are expected to raise interest rates in during H2 2016. The pound has seen positive sentiment in recent weeks on the back of hawkish tendencies from two MPC members and stellar average earnings. Due to this bullish sentiment the bias is to the upside for any deviations with this data.

The pound is currently at multi-year highs against many counterparts and this makes it somewhat more risky to buy. Buying after a pullback is more optimal.

Expected Market Reaction:
This is not tier 1 data, therefore any major reaction will occur as a result of a large deviation. A positive deviation may see further upside in the already lofty pound. A negative deviation may see a pullback, which could provide a good buying opportunity.

Take a look at my weekly Forex news events overview here in order to learn more about interpreting the upcoming UK Manufacturing PMI data.

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Source:: UK Manufacturing PMI – Forex News Trading

About the Author

Jarratt Davis is the world’s ranked #2 (2008-2013) Forex Trader by Barclays FX Hedge Index, following years of mastering his art as a self employed trader Jarratt has now entered the field of education and delivers the most robust Forex education package on the market. Jarratt’s mentorship is one of the only programs on the market that is conducted by a verified professional trader. Forex Alchemy readers can get the FREE mini course where Jarratt gives away some of his secrets to success by Clicking Here... [space height="20"] [social type="facebook"]www.facebook.com/JarrattDavisForex/[/social] [social type="twitter"]https://twitter.com/jarrattdavis[/social] [social type="google-plus"]https://plus.google.com/+JarrattdavisForexTrader/[/social] [social type="youtube"]https://www.youtube.com/user/JarrattDavisForex[/social]