UK PMI: What to expect of GBP/USD?

By FXStreet The UK economy will release its April manufacturing PMI later in the European session. Market consensus expects the indicator to have improved a tad to 51.2 from 51.0, adding to the recent string of positive results in the domestic economy.

The increasing selling pressure hurting the US dollar and alleviated fears on a potential ‘Brexit’ scenario have been already fuelling the ongoing upside in Cable. However, a positive surprise today could surely add to the bid tone surrounding the Sterling ahead of the upcoming and more relevant Services PMI (Thursday).

The indicator has shown an erratic performance in recent months – with January’s 52.9 reading being the highest level so far this year – and it has reflected the alternating prospects of the UK’s manufacturing sector, all framed within some deceleration in the domestic economy.

Regarding GBP/USD, it has quickly overcome the 1.4700 barrier today and seems to be headed towards 1.4815, YTD tops posted in early January. If spot manages to clear the latter, there will be no major obstacles for a visit to the psychological level at 1.5000.
For more information, read our latest forex news. …read more

Source:: FX Street