By Boris Schlossberg (www.gftforex.com)
UK Manufacturing PMI improved to 35.8 against 34.9 the month prior but remained essentially moribund as the country’s economy continues to experience the worst contraction in demand in more than fifty years. The lower value of GBPUSD proved to be of little help to the nation’s manufacturers as export demand was muted and the PMI reading remained well below the 50 boom/bust level.
The news suggests that BOE will almost certainly lower rates by another 50bp this week taking the overnight rate to a record low of 1%. Cable continued to slide in post news price action dropping below the 1.4200 level in early London trade.
After a counter trend rally last week sterling appears to have hit key resistance at 1.4500 barrier and given the strong down ward bias in the pair, that level appears to be a cement ceiling for GBP/USD for now, as fundamentals continues to show no rebound in sight.
No comments:
Post a Comment