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Following the US ISM Manufacturing PMI, the GBP/USD pair moved into negative territory. Despite the market’s optimism on the favourable economic data from China, the pair is seen falling. Moreover, a BoE official expressed more hawkish views than anticipated, which helped boost the GBP/USD. At the time of writing, the GBP/USD exchange rate is 1.2005, which is 0.15% less than its opening value.
During the session, the market’s mood shifted to mixed. Statistics from China showed that manufacturing activity there reached the expansionary range, which was good news for risky assets. The GBP/USD lost some of its earlier gains due to Fed officials speaking, namely the Minnesota Fed President Neil Kashkari who said that in December, he thought that rates needed to go to 5.4% and hold, and added that he’s open at the next Fed meeting to increase rates 50 or 25 bps. He said that the risks of untightening are much more significant than overtightening.
The US ISM Manufacturing PMI came at 47.7, below 48.0 estimates, which sponsored a leg toward the daily low at 1.1990 before reclaiming 1.2000.
On Brexit news, the Senior Democratic Unionist Party official, Charles Whip Wilson, said that the party is studying the deal’s details and would not make a knee-jerk decision on whether to accept it. Wilson said that was “an indication that the government knew this deal was not great and was trying to persuade unionists to accept it on the basis that we have great respect for the monarchy.”
The S&P Global Manufacturing PMIs for the US came at 47.3 vs. a previous reading of 47.9, and at around 15:00 GMT, the release of the ISM Manufacturing PMI would shed some light on the status of the US economy.
