The S&P Global UK manufacturing PMI for August was confirmed yesterday at 52.5, the strongest result for the index in just over two years, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
GBP gains above 1.3160 may prompt some short-term gains
“Growth momentum, still elevated wages and inflation hot spots will keep the BoE on the sidelines in September (only 5-6bps of cuts are priced in for the policy meeting on the 19th) while many other major central banks ease policy. Slower rate cuts in the UK relative to other major central banks should limit the extent of GBP losses in the near term.”
“GBP/USD has corrected just under a quarter of the August rally and appears to be finding support around the 1.3120 Fibonacci retracement (23.6% of the 1.2660/1.3266 rally). A lower close on the week through Friday suggests consolidation rather than an outright downtrend for the pound.”
“GBP gains above 1.3160 may prompt some short-term gains, while a drop below 1.3120 will likely prompt some further weakness towards the 1.2950/1.3050 range.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
