Nice Rebound for UK Manufacturing, but not that it Matters for the GBP
Just like manufacturing in mainland Europe, the British manufacturing has been on a slowing trend throughout this year. It used to be in a good expanding period last year, until the first few months of this year, the same as in Europe, but it has cooled off considerably. So, only the US remains with a good manufacturing activity among developed nations at the moment.
Last month, the manufacturing PMI indicator declined from 53.8 points to 51.1 points, which is pretty close to contraction. Although, this month’s report which shows the manufacturing activity for November showed a nice jump to 53.1 points.
This is a nice turnaround from the declining trend. But, don’t get too carried away because this is just one month. We might return back to the declining trend next month, looking at how things are going.
Not that the GBP or GBP traders care much about manufacturing figures or any other economic numbers for that matter right now. Brexit is in its final stages and the GBP has been trading that event for months now, ignoring all other fundamentals and technicals.
GBP surged nearly 100 pips higher in the Asian session today, but it has reversed down now losing all the gains. I haven’t seen any Brexit related comments this morning, so this is just the market sentiment doing all the work. A bit difficult to trade in my opinion, so be careful with GBP pairs because they seem to be possessed by the devil.
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