The decidedly soggy UK PMI readings leave the pound a little shaken but unstirred
I expressed caution in my preview and said:
"Given the softer mftg and construction PMI data this week I can't see any positive news coming here but if the bad news is factored in then the risk would be to the upside."
Well we chewed through the strong demand into 1.4040 to post 1.4033 but the muted reaction on such a big miss was enough to force shorts to re-assess.
Still plenty of supply between 1.4100-20 but the market is what the market does and at that point immediately after the data it was the buyers who prevailed.
Currently 1.4073 with EURGBP back to 0.7720 from 0.7746 just shy of the 0.7750 area I also highlighted.
Bad data yes, not a good sign for the UK economy but sometimes data is only part of the story and we've seen that here. Not rocket science, just supply and demand.