GBP Consolidates Ahead of US ISM Manufacturing PMI Data

The British pound (GBP) was subdued during Monday’s London session but held the key support level of 1.2700 against the US dollar (USD). GBP/USD moved sideways at the start of a data-heavy week in the US, with the Institute for Supply Management (ISM) manufacturing purchasing managers’ index (PMI) for May due at 14:00 GMT.

Economists expect the PMI, which measures factory activity, to rise to 49.8 from 49.2 previously, but still below the 50.0 threshold that separates expansion from contraction. However, the preliminary report for the S&P Global PMI for May, another survey measuring US manufacturing activity, showed that the PMI rose to a two-month high of 50.9 from 50.0 in April.

In the PMI report, investors will also focus on other sub-indices such as the new orders index and the prices paid index, as these two indices can reveal the demand outlook for the manufacturing sector and changes in input prices. Analysts believe that these two indices are good leading indicators of impending inflationary pressures.

Later this week, investors will be keeping a close eye on the U.S. ISM services PMI and official employment data, due on Wednesday and Friday, respectively. Meanwhile, there are no major events on the United Kingdom (UK) economic calendar.

GBP latest articles

Popular exchange rates

foreign exchange

fxcurrencyconverter is a forex portal. The main columns are exchange rate, knowledge, news, currency and so on.

© 2023 Copyright