British manufacturing growth climbed to a two-and-a-half-year high last month, fuelled by new orders from both home and abroad and adding to signs the economy ended 2016 strongly. British manufacturing PMI rose to 56.1, the strongest reading since June 2014, from 53.6 in November. That exceeded market forecasts, which pointed to a decline to 53.1.
The boost to competitiveness from the weak exchange rate has undoubtedly been a key driver of the recent turnaround. But cost pressures coming from the GBP’s fall will increasingly feed into consumer prices this year.
A separate survey of financial officers last week showed business morale has recovered completely its plunge after the Brexit vote. However, companies are reluctant to spend more because of uncertainty about the economic outlook.
The GBP appreciated against the EUR after strong macroeconomic data from the UK. The EUR/GBP broke below 14-day exponential moving average today, which is an important bearish signal. Shooting star candle on Friday strengthens our bearish view. We are opening a short position at 0.8480 today with the target at 0.8340.
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The boost to competitiveness from the weak exchange rate has undoubtedly been a key driver of the recent turnaround. But cost pressures coming from the GBP’s fall will increasingly feed into consumer prices this year.
A separate survey of financial officers last week showed business morale has recovered completely its plunge after the Brexit vote. However, companies are reluctant to spend more because of uncertainty about the economic outlook.
The GBP appreciated against the EUR after strong macroeconomic data from the UK. The EUR/GBP broke below 14-day exponential moving average today, which is an important bearish signal. Shooting star candle on Friday strengthens our bearish view. We are opening a short position at 0.8480 today with the target at 0.8340.
GrowthAces.com - Daily Forex Trading Strategies
Sign up now for forex strategies newsletter with 30% discount