UK manufacturing PMI disappoints – scope for GBP to decline on further pull back in data
UK PMI manufacturing printed below expectations at 56.7 vs 57.5 (prior: 57.2) this morning. The pullback in the GBPUSD was short lived, but we continue to view that there is scope for GBP to decline on further soft data releases. Our BNP Paribas FX Positioning Analysis indicates that long GBP positioning appears crowded. Any softness in the construction and services PMI releases (which are currently a very elevated levels) is likely to trigger profit taking on long GBP trades and a squeeze in investors’ positioning.
Read the full report: FX Daily
BNP Paribas