UK Manufacturing PMI m/m 12/01/09

4:30am (NY Time) UK Manufacturing PMI  Forecast 54.1   Previous 53.7
ACTION: GBP/USD        BUY 56.0         SELL 52.0

We will be trading the Manufacturing PMI number from UK today, it is expected to be at 54.0 and it is considered as a positive release given the fact that anything above the 50 level means expansion in the manufacturing sector.

We are looking for a difference or deviation of 2.0, and remember that this is a leading indicator and its impact may affect the upcoming trend of this currency for the weeks to come, or at least for this month. If our BUY/SELL numbers are hit, we can expect GBP/USD to move 50 pips within the hour.  Given the fact that last week’s risk aversion movement drove GBP/USD down to the 1.6250 support level, we are probably looking at more upside potential based on the oversold (and undervalued) level of Sterling.  However, I’d not hesitate to SELL Sterling if the release surprises to the downside.

DEFINITION:

“UK Manufacturing PMI is a survey of purchasing managers in the manufacturing sector on various economic activities, including inventory, employment, orders, etc… A higher than 50 reading means expansion, or a less than 50 reading means contraction.”

Related posts:

1. UK Manufacturing PMI 11/02/09
2. UK Manufacturing PMI 01/04/10
3. Strategy For UK Manufacturing PMI 06/01/10
4. UK Manufacturing PMI 02/01/10
5. UK Manufacturing PMI 04/01/10
6. UK Manufacturing PMI 03/01/2010
7. Forex News Strategy UK Manufacturing PMI – 11/01/10
8. Forex Trading Plan For UK Manufacturing PMI 07/01/10
9. Forex Trading Plan For UK Manufacturing PMI 10/01/10
10. UK Manufacturing PMI 09/01/09

Tagged as: Buy Sell, Contraction, currency, Downside, economic activities, GBP, Leading Indicator, Manufacturing PMI, manufacturing sector, Ny Time, pips, PMI, Purchasing Manager's Index, purchasing managers, risk aversion, Sterling, Surprises, Survey, UK