Sterling hit with another bomb as UK manufacturing PMI touches 17-month low
Cable now treading waters below 1.3700
Lows for the day touches 1.3685. Ouch.
It may be thin liquidity trading, but the trade here is simple. As
mentioned earlier, the risk for sterling is that if the soft patch in Q1 suffers is not owing to weather or transitory factors and that it extends into Q2.
mentioned earlier, the risk for sterling is that if the soft patch in Q1 suffers is not owing to weather or transitory factors and that it extends into Q2.
We had out first glimpse
here and it wasn’t pretty. New orders fell to the weakest since June 2017 and Markit comments that the reading suggests there is no improvement in factory output after almost stagnating in Q1.
here and it wasn’t pretty. New orders fell to the weakest since June 2017 and Markit comments that the reading suggests there is no improvement in factory output after almost stagnating in Q1.
Although manufacturing isn’t a key contributor to the UK economy, it is all about sentiment right now after the weak Q1 growth figures.
Attention will now turn to the construction, services, and composite readings tomorrow and on Thursday. And if they are to come out as poorly as this, it would suggest the market shouldn’t even be questioning about a rate hike this year – let alone one in August now that May is blown out of the waters.
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