When is the UK manufacturing PMI and how could it affect GBP/USD?

UK manufacturing PMI overview

The UK manufacturing PMI for October is due for release today at 0930GMT and is expected to show that the pace of expansion in the activity eased further last month, following September’s bigger-than-expected drop. The index is expected to arrive at 55.8 versus 55.9 booked previously.

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 50 pips in deviations up to 1.65 to -2.50, although in some cases, if notable enough, a deviation can fuel movements of up to 80 pips.

How could affect GBP/USD?

Technically, the pair remains on track to conquer 1.3300 upside barrier, with the upside to gain traction on a positive surprise, opening doors for towards 1.3359 (daily classic S2/ Fib R3), below which next target lies at 1.3404 (Oct 2 highs). Should the data show a bigger-than-expected fall, the spot could reverse towards 1.3258/50 barrier (daily pivot/ psychological levels), below which a test of 1.3212/07 (20 & 5-DMA) becomes imminent.

Key notes

UK: Manufacturing PMI likely to remain unchanged at 55.9 in October - TDS

GBP/USD Forecast: poised to gain further ahead of FOMC and BoE

About UK manufacturing PMI

The Manufacturing Purchasing Managers Index (PMI) released by both the Chartered Institute of Purchasing & Supply and the Markit Economics captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the Manufacturing PMI is an important indicator of business conditions and the overall economic condition in the UK. A result above 50 signals is bullish for the GBP, whereas a result below 50 is seen as bearish.