forex-comparic-photo-189-of-564-300x199About 10:30 we met another industrial PMI readings according to IHS Markit – this time for the UK. Earlier, at 10:00 we informed about outcome for the euro area, which was equal with the expectations of investors. In case of the UK data was on lower levels which led to depreciation of the pound sterling.


The November UK Industrial PMI at 53.40

The main index at level of 53.40 proved to be worse than expected (54.50) and the results of October (54.30). Report of IHS Markit says also about fall in industrial new orders to 54.80 from 56.20.

Analysts note that the weak exchange rate of sterling against the US dollar is constantly increasing price pressure on the British producers.

PMI Manufacturing source IHS Markit
PMI Manufacturing source IHS Markit

Rob Dobson, senior economist at IHS Markit commented on the results:

“The latest PMI data suggest that the UK manufacturing sector continued November in good condition. On the other hand, the slowdown may cast a shadow on the pace of expansion in the medium term. Gladdens, however, that demand of consumer and B2B spending is growing. “

Pound loses after data

At the time of index publication GBP/USD slides by about 20 pips against LT intraday:

GBPUSD M5
GBPUSD M5

The loss in the range of several pips is also visible against the euro. Here, after the test of lows from Wednesday and Thursday EUR/GBP is trying to more clearly reflect, drawing new intraday highs:

EURGBP M30
EURGBP M30

Full report here Link

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