Forex: GBP moves out of Euro´s orbit – BBH

A key theme of the market recently has been the continued weakness of the UK economy and Sterling´s move out of the Euro-orbit to some extent write Brown Brothers Harriman analysts.

They note that the CIPS manufacturing survey was disappointing and the December report was revised lower. The Jan reading of 50.8 compares with 51.2 in December, which was revised from 51.4. Cable fell to session lows on the news, just above 1.58. They finish by writing , “However, we suspect the market may be a bit too negative.  It is the first back-to-back reading above 50 since March-April last year.  Output itself rose to 54.2 from 53.4, which is the highest since Nov 2011.  New orders rose for the third consecutive month.”