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British Pound Breaking News: British PMI raises Hawkish Bets, GBP strengthens against USD and EUR


POND STERLING SPEAKING POINTS

  • British PMI strengthens pound.
  • 50bps interest rate hike gets traction.

FUNDAMENTAL BACKGROUND

UK PMI‘s revealed that both sectors exceeded (composite) estimates despite manufacturing falling slightly below forecasts – see the economic calendar below. This print comes on the back of significant fog in the eurozone earlier this morning by way of France and Germany.

GBP ECONOMIC CALENDAR

Source: techlives Economic Calendar

Yesterday’s UK inflation pressure coupled with today’s UK PMI numbers could open up the possibility for the Bank of England (BoE) to move to 50bps course step in the next meeting. The economy may not be faltering yet and could help in the fight against inflation.

TECHNICAL ANALYSIS

Initial market reaction shows GBP bulls emerging as hawkish bets increase on both GBP / USD and EUR / GBP graphs respectively.

GBP / USD 5-MINUTE CARD

gbpusd 5 minute chart

Graph prepared by Warren Venketas, IG

EUR / GBP 5-MINUTE CARD

eurgbp 5 minute chart

Graph prepared by Warren Venketas, IG

Contact and follow Warren on Twitter: @WVenketas

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