Rates as of 0500 GMT
Currencies were still quite yesterday as the market barely got back to work after the long weekend.
The major movement was in GBP. The currency fell sharply as the manufacturing purchasing managers indices PMIs for Europe came out Tuesday morning. Unlike the other European countries, Britains manufacturing PMI was revised down sharply to 65.6 from 66.1.
By contrast, Japan was revised up to 53.0 from 52.5, France was revised up to 59.4 from 59.2, Germany was revised up to 64.4 from 64.0, and the EU as a whole was revised up to 63.1 from 62.8. Later in the day, the US was revised up to 62.1 from 61.5.
So, you can see that the UK was an outlier in having its manufacturing PMI revised down.
The curious thing was that the bottom for GBPUSD came at 831, just a minute after the UK PMI was released. You can see that if we look at a twohour snippet of the above graph, from 0700 GMT to 0900 GMT
It might be more fruitful to look at EURGBP. EURGBP started rising from 0725 GMT. It may be that people were watching some of the other PMIs for example, the Netherlands, which came out at 0700 GMT 69.4 vs expectations of 67.2 or Spain at 0715 GMT 59.4, a tic above expectations of 59.3, previous 57.7 EURGBP kept rising until about 0930 GMT, with barely a ripple when the revised UK PMI came out. So yes, it did
Some others are saying that the weakness in GBP may be due to concerns about the new variant of the virus in the UK. Its true that virus…