GBP/USD Jumps After lower-than-expected PMI ReleaseDeltafx Admin 19 December 2022
The British Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of manufacturing purchasing managers. A reading above 50 indicates an expansion in manufacturing, while a reading below 50 indicates a contraction in the sector. Traders follow these surveys closely because purchasing managers typically have access to data on their company’s performance, which can be a leading indicator of overall economic performance.
The release of a higher than expected reading should be considered positive/bullish for the pound, while a lower than expected reading should be considered negative/bearish for the pound.
The U.K. manufacturing PMI was released at 9:30 a.m. on December 16 at 44.7, which was 1.8 below expectations. It should also be noted that the value of the previous period of this index was 46.5.
After the publication of the Purchasing Managers’ Index (PMI), which was below expectations, the GBP/USD exchange rate rose to $1.22164.