The UK manufacturing PMI slightly beats expectations with a climbing back to growth, but only just. Net lending to individuals badly disappointed with 1.6 billion instead of 5.3 expected and 9.2 last time. M4 Money Supply fell by 0.1%, also short from 0.2% expected. Mortgage approvals joined the negative camp with a minor miss with 66K against 68K predicted.
GBP/USD remains around the same range at 1.4480. The pair maintains a tight range.
Markit’s manufacturing purchasing index for the UK was expected to tick up from 49.2 in April to 49.6 in May. Figures under 50 represent contraction. This sector has always been the weaker link in the economy.
GBP/USD was trading at 1.4485 ahead of the publication. Resistance was found at 1.4580 and 1.4650. Support awaits at 1.4440 and 1.4370.
The pound was pounded by two polls showing a momentum in favor of the Leave campaign. Brexiteers have gained some lost ground according to both ORB and ICM polls.
Two more PMIs follow: for the construction sector tomorrow and the most important sector, services, comes on Friday. Economic indicators are currently playing second fiddle to the various Brexit/Bremain opinion polls as we are 22 days away from the crucial vote.
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