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

The UK manufacturing PMI overview

The UK manufacturing PMI for March is due for release today at 0830GMT and is expected to show that the pace of expansion in the activity continued to deteriorate. The index is expected to arrive at 54.7 versus 55.2 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 looks set to regain the 1.41 handle. Should the data show a bigger-than-expected drop, the spot could pare back gains and retreat towards the 1.4050 (daily pivot/ psychological levels), below which a test of 1.4010 (six-day lows) becomes imminent. However, on a positive surprise, the upside is likely to gain traction, opening doors towards 1.4152 (Mar 21 high), above which next target lies at 1.4202 (Mar 28 high).

Key Notes

UK: Expect March Manufacturing PMI to stabilize - Barclays

UK: Downside risks to the Manufacturing PMI - TDS

About the 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.