UK Manufacturing PMI 04/01/10

4:30am (NY Time) UK Manufacturing PMI  Forecast 56.8   Previous 56.6
ACTION: GBP/USD        BUY 58.8         SELL 54.8

We’ll be focusing on the Manufacturing PMI number from UK  today and it’s forecasted at 56.8 and since PMI’s medium point is at 50, this forecast is considered as a positive release (above the 50 level means expansion in the manufacturing sector).

We are looking for a tradable deviation (or the difference between the forecast figure and the actual release figure)  of 2.0, and because this is a leading indicator and its impact may affect the future trend of this currency for the remainder of the week or even for the month of March, market should react to this release with volatility should we get out deviation.  We can expect GBP/USD to move 50 pips within the hour if you deviation is hit. 

With recent risk appetite sentiment and GBP rally, we could see market react with strong optimism should the release surprises to the up side.

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 03/01/2010
2. Strategy For UK Manufacturing PMI 06/01/10
3. UK Manufacturing PMI 02/01/10
4. Forex Trading Plan For UK Manufacturing PMI 07/01/10
5. Forex News Trading UK Manufacturing PMI 01/04/2011
6. Forex News Strategy UK Manufacturing PMI – 11/01/10
7. UK Manufacturing PMI m/m 12/01/09
8. Forex Trading Plan For UK Manufacturing PMI 10/01/10
9. UK Manufacturing PMI 01/04/10
10. Forex News Trading UK Manufacturing PMI 12/01/10

Tagged as: economic activities, GBP, Leading Indicator, Manufacturing PMI, manufacturing sector, PMI, Purchasing Manager's Index, purchasing managers, Sterling, Survey, UK, UK PMI