Not all is bad in the UK: manufacturing PMI has jumped to 52.1 points, showing growth in this beleaguered sector. The survey was made before the Brexit vote and therefore may be somewhat outdated. On the other hand, the fall of the pound could be positive for the sector, especially for those companies exporting to outside of the European Union.
GBP/USD is trading around 1.3315, rising after the publication.
Markit’s manufacturing purchasing managers’ index for June was expected to slip to 49.9 points from 50.1 in May.
The British pound was almost exclusively moving on the post-Brexit developments. Some are political, such as the turmoil in the UK Conservative Party. And some are purely economical: BOE governor Carney promised fresh easing and this weighed on the pound.
The reaction to economic data, even if it is somewhat stale, is refreshing.