Sterling loses ground

Friday, 1 July 2011 12:08

United Kingdom's Manufacturing PMI was released earlier today to a lower rate than initially expected.  Purchasing Managers' Index was predicted to rise even more than May's release of 52.0, at 52.2.  Instead the Index fell lower than previous announcement and lower than expected, at 51.3.

This marked a 21-month low for the Manufacturing PMI in June.  This Purchasing Managers' Index is measured from new orders, data, employment, output and some other factors.

After the disappointing PMI release, Sterling lost ground fast against the American Dollar.  The pair was trading around 1.6070 before the news came out, only to shoot down to a low of 1.6000; a whole 70 pips.  Pound/Dollar is currently trading at 1.6004, with no rebound in sight.