GBP Falls vs. USD, Rises vs. JPY After Manufacturing Report

Today’s data about Britain’s manufacturing sector left mixed feeling in Forex traders, resulting in a drop of the Great Britain pound against the US dollar but an advance versus the Japanese yen.
The Markit/CIPS Purchasing Managers’ Index fell from 57.3 to 57.0 in May, slightly below the forecast of 57.1. At the same time, the report said that the index “again registered one of its highest readings in the survey history”. The pound is especially vulnerable to any negative data this week as the Bank of England holds its meeting on Thursday, and the currency may experience excessive volatility as traders attempt to guess what path British policy makers will choose.
GBP/USD was down from 1.6763 to 1.6737 as of 17:02 GMT today. GBP/JPY advanced from 170.73 to 171.35 after falling to 170.44 earlier.

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