Impressive set of manufacturing PMI readings from UK and the pound is flying higher 1 Sept
Much better than expected/prev data has seen the pound stage an impressive rally with GBPUSD testing 1.3250 in a rush and EURGBP knocking on the 0.8400 support door.
GBPJPY has been underpinned all morning and now 137.30.
I'm inclined to sell into this sharp GBP rally but will wait to see how the dust settles. No doubt that there is an appetite for the moment that has been driven by EURGBP supply and GBPJPY demand lately.
The strong beat to new export orders is going to give post-Brexit bulls something to cheer but remember we're not actually in any different position until we actually leave. The real test is yet to come.
Export demand will have been helped by a weaker pound so a stronger pound has a reverse effect.
Bulls will be pleased though and I stand by my view that Brexit ultimately will be UK/GBP bullish. Right now though I'm not so convinced so it's best I sit on my hands.
GBPUSD has larger sell interest at 1.3280 and 1.3300 and that should prove better value to short if we hold. EURGBP demand here and into 0.8385.