Global macro overview for 01/09/2016:
The UK Manufacturing PMI was released this morning and the index surprised market participants. The expected score of 49.1 was beaten by much stronger 53.3 and both of them were better than last month figure of 48.2. According to Markit, manufacturing production increased in August at the fastest pace in seven months. The biggest gain was noted in new export orders component, it was the highest since June 2014 at 54.9 vs 51.4 previously. In conclusion, the reading is much stronger, but all in all the manufacturing sector will give a limited contribution to GDP.
Let's take a look at the GBP/USD technical picture in the daily time frame. The data has given the price a lift and the market has almost hit a 55-period moving average, but still is trading below it. Moreover, the important key resistance at the level of 1.3365 hasn't been violated as well, so the bear camp is still in control over this market.
