Chart: WorldWideMarkets Alpha Trader
The pound fell after the release of the weaker than expected UK Manufacturing PMI for April falling to 51.9 versus the median forecast of 54.6. (Previous 54). After nearly touching 1.5400 the rate fell from 1.5385 and fell sharply to 1.5320 and continuied to decline in the thin European session to test the low of 1.5267 (-128 pips).
Another factor that weakened the pound is the political uncertainty in the upcoming UK election to be held on May 7th. The latest Populus poll shows the Conservatives and labour tied at 33%, from a 3 point lead by the Labour Party last week.
The market is very thin with most European participants away for the May holiday. The dollar is broadly lower all week drvien by the poor 1st QTR US GDP on Wednesday and sent the dollar lower by 6%. Bond yields soar and stock markets in Europe and the US are lower.