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GBP/USD continues to slide despite solid UK PMI numbers

FXstreet.com (London) - GBP/USD continues to slide despite robust manufacturing data. The seasonally-adjusted Markit/CIPS Purchasing Manager’s Index printed at 57.3 in December, down slightly from November’s 33-month high of 58.1, but still showed solid conditions. Despite the positive numbers GBP/USD continues to slide, currently at USD1.6547.

Robust UK conditions

Manufacturing output rose for the ninth month on the trot in December, driven by rising levels of incoming new work and efforts to clear backlogs of work. December data also showed an eighth successive monthly increase in manufacturing employment. The rate of jobs growth was the second-strongest in the past two-and-a-half years, only slightly down from November.

US data could stop the GBP/USD slide

US PMIs due out later today could put the brakes on GBP/USD losses, down 0.11 percent on the session so far after falling from highs at USD1.6603. December numbers are expected to dip from November’s three-year high of 57.3, with consensus expectations of a print of 56.8.

USD/JPY capped below 105.40

Despite a failed overnight attempt to test the 105.50 level, USD/JPY is capped around 105.40 at presently, trading at 105.36 with little significant price movement.
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Flash: GBP/USD to face resistance ahead - OCBC Bank

Emmanuel Ng of OCBC Bank suspects that GBP/USD could meet resistance ahead follwoing its plod higher since December 13th.
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