Latest data released by Markit - 1 November 2018
- Prior 53.8; revised to 53.6
This is the weakest reading since July 2016 as new orders and employment fell for the first time since after the Brexit vote. Input prices are at its slowest rise in over 28 months. The details certainly doesn't paint a pretty picture but I don't expect this to dent the pound on the day.
Right now, it's all about Brexit optimism and I would expect dips to be bought given that the run higher has been all about the optimism of a financial services deal as well as short covering. The latter being a highly prominent factor that squeezes don't tend to be bothered with fundamentals.
Cable barely reacting to this as price moves from 1.2885 to 1.2879 before now rising up to 1.2890. EUR/GBP pretty much unchanged at 0.8827.