GBP/USD: Manufacturing PMI above forecasts but still weak – Scotiabank

Pound Sterling (GBP) is entering the NA session largely unchanged from Monday’s close, a mid-performer among its G10 peers, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

GBP little changed on the day

"The manufacturing PMI release came in slightly above expectations at 44.9 (vs. 44.6 prev.) but the levels remain well below the expansion/contraction threshold at 50." 

"Comments from the BoE have focused on rising inflation expectations and unexpectedly persistent wage growth. Markets are currently pricing about 20bpts of easing for the May 8 BoE meeting, offering possible support if policymakers shift toward a neutral stance."

"The moderation in momentum reflects the continued consolidation within a one-month range roughly bound between the mid1.28s and levels just above 1.30. Nearer-term price action offers support around 1.2880 and resistance just below 1.30."