The Markit/CIPS Manufacturing Purchasing Managers Index (PMI), growth continued in July, though missed expectations. The survey released at 9:30am (London), was 55.4 for July, down from 57.2 in June. The number was well above the 50 level (contraction/expansion level), however sterling has been weak in FX markets against the USD in the last few days.
In the last quarter, the majority of macro releases were beating expectations, with Sterling trading at a 5-year high on interest rate hike expectations. Over the last 2 weeks (since the 15th July) GBPUSD has trended lower from a high of 1.7190, to current price of 1.6835.
On a daily chart the pair looks oversold on the RSI, at 14, which could indicate some support with bids seen around 1.6830/20.
Full – Release: Markit/CIPS UK Manufacturing PMI for July