Slower Manufacturing Growth Makes Sterling Weaker
The Great Britain pound slipped today as the unexpected drop of the UK manufacturing PMI caused investors to trim their bet on an increase of interest rates by Britain’s central bank.
The UK Manufacturing Purchasing Managers’ Index dropped from 52.0 in May to 51.3 in June. Traders hoped for an increase to 52.2. The report also said that growth of employment was slowest in nine months.
GBP/USD dropped from 1.6053 to 1.6032 today as of 10:03 GMT after posing the intraday high of 1.6094 and the intraday low of 1.5987.
If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.
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Employment, GBP/USD, Great Britain, Manufacturing, PMI, Pound
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Earlier News About the Great Britain Pound:
- Sterling Trades Lower with Widening Current Account Deficit (2011-06-28)
- Pound Regains Strength After Week of Losses (2011-06-27)
- UK Economic Outlook Causes Weakness of Pound (2011-06-24)
- Pound Falls as Retail Sales Decline (2011-06-23)
- Pound Falls as Minutes Signal About More Stimulus (2011-06-22)
2 Comments
Aside from the poor economic outlook in the UK, with BOE Paul Fisher heavily talking the pound down (June 21st), I would be surprised if we hear of a rate increase anytime soon.
Yeah, but for some reason, the technical indicators are currently quite favorable for pound.