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UK PMI sharpens hawk bets, boosts sterling against dollar and euro -by Ecork

Pound Sterling Points

  • British PMI supports the British pound.
  • An interest rate hike of 50 basis points is gaining traction.

basic background

United kingdom PMIIt revealed that both sectors (composite) beat estimates even though manufacturing came in slightly below expectations – see economic calendar below. This print comes against the background of major mistakes in the eurozone earlier this morning for example France and Germany.

sterling economic calendar

source: DailyFX Economic Calendar

UK yesterday inflation Printing coupled with today’s UK PMI numbers may open up the possibility for Bank of England (BoE) To move about 50 bits per second modified Raise at the next meeting. The economy may not be in swing yet and it can help combat inflation.

Technical Analysis

Initial market reaction shows that the sterling bulls are on top extremist The bets are up on both British Pounds / US Dollars And the EUR/GBP straight graphs.

British Pounds / US Dollars 5 minute chart

gbpusd 5 minute graph

The graph was prepared by Warren VenkitasAnd the IG

EUR/GBP 5-minute chart

5 minute chart eurgbp

The graph was prepared by Warren VenkitasAnd the IG

Connect with Warren and follow her on Twitter: Tweet embed

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