GBP/USD - Manufacturing PMI also beats
GBP/USD fails to react as the manufacturing number comes in at 48.9 vs expectations of 48.3.
In the UK the main worry is the political situation. Manufacturing data will have little consequence for the fate of GBP. At the moment price action in cable has been ruled by the polls. Over the weekend the Labour party managed to claw back some points after the recent terrorist attack at London Bridge and debates. Today there is another scheduled debate on terrestrial TV so expect some more volatility this evening.
Cable is holding in a strong consolidation phase between 1.2773 and 1.3013. Having said that these levels are on the daily chart and it doesn't seem like we could get close to breaching them at the start of the week unless we get a political surprise. The market consensus is still leaning toward a win for the Conservative party and Boris Johnson is still managing to hold on to some key fans.