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UK manufacturing PMI a tad weaker in Jan, but meets estimates

The manufacturing sector activity in the UK economy came in line with expectations and eased slightly in January, but kicked-off 2017 on a stronger note, the latest data from Markit revealed on Wednesday.

The final Purchasing Managers' Index (PMI) in the UK arrived at 55.9 points in Jan, as compared to a previously revised 56.1 reading. Markets had predicted a drop to 55.9.

Key Points:    

UK Manufacturing PMI at 55.9 in January  

Output growth at 32-month high

Purchase price inflation at new survey record

Rob Dobson of Markit commented in the release, “UK manufacturers have reported a bumper start to 2017, but are also seeing prices rise at an unprecedented rate. Factory output growth accelerated to a 32-month high in January, as solid domestic demand continued to drive production volumes higher. There were signs that the boost to export orders from the weak exchange rate was waning, as growth of new business from abroad slowed sharply.”

EUR/GBP muted around 0.8575 after UK PMI

The EUR/GBP cross had a muted reaction to the release of UK manufacturing PMI and was confined in a narrow trading range below 0.8600 handle. Spot re
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GBP/USD through 1.2600 post-PMI, daily highs

The British Pound has extended the upside above the 1.2600 handle vs. the greenback in the wake of January’s PMI print, with GBP/USD now testing fresh
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