Monday, October 2, 2017 5:37 AM EDT
Markit’s manufacturing purchasing managers’ index dropped to 55.9 points in September. This is below 56.7 seen in August and 56.3 expected.
GBP/USD was already sliding and extends its falls. The low so far has been 1.3301. Pound/dollar is hesitating ahead of the round number. Further support awaits at 1.3270. This is followed by 1.3230. The pair has lost a large part of the gains related to the expectations for a rate hike in November.
The drop in the indicator may be related to the recent strengthening of the pound. The higher exchange rate makes manufactured goods less attractive.
The UK government is still in crisis, with PM Theresa May facing a potential leadership challenge. Foreign minister Boris Johnson seems to undermine the PM.
The US dollar is on the rise on hopes that the tax reform will pass. The mood in markets has deteriorated following the violence in Catalonia and the shooting in Las Vegas, which left at least 20 dead.
Here is the GBP/USD chart, showing the deterioration.
(Click on image to enlarge)
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...
more
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader's level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit , so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch's authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information.
less
How did you like this article? Let us know so we can better customize your reading experience.