UK PMI data for October were broadly weaker than forecast. Manufacturing, Services and Composite readings all held above the 50 point this month but the sharp drop in Manufacturing (50.3, from 51.5) and the Composite measure (51.7, from 52.6) suggests a notable slowing in growth momentum, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP overlooks weak PMIs

“BoE Governor Bailey commented yesterday that inflation was falling faster than expected but services inflation was still inconsistent with the Bank’s price target. The Governor speaks again today but the trend in UK data reports support market expectations for a 25bps rate cut next month.”

“Short-term price patterns in Cable indicate a minor rebound in price may be developing. Intraday price patterns show a minor “morning star” bull reversal pattern developed overnight ahead of 1.29. A push above intraday resistance at 1.3025 should drive more gains in the pound towards 1.3075/00. Support is 1.2900/10.”