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

UK manufacturing PMI overview

The UK manufacturing PMI for September is due for release today at 0830GMT, and is expected to show that the pace of expansion in the activity eased last month, when compared to August’s positive surprise. The index is expected to arrive at 56.4 versus 56.9 booked in August.

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?

Technically, the pair remains on track to test 1.3300 support, with the downside to extend on a bearish PMI report, opening doors for towards 1.3250, below which next targets lie at 1.3162 (Sept-mid lows). In case of an upside surprise, the spot could head back towards 1.3392/1.3400 barrier (5-DMA/ round number), beyond which doors open up for a test of 1.3419 (20-DMA) and 1.3446 (10-DMA).

Key notes

UK: Manufacturing PMI to hit a fresh 3-year high at 57.2 - TDS

GBP/USD Forecast: descending trend-line capping up-move, manufacturing PMIs in focus

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.