When is the UK construction PMI due for release? How could the figure impact the GBPUSD pair?
2 November, GKFX – The UK construction PMI for October is due for release today at 09:30 GMT, with the figure expected to come in at 52.0, down from September’s 52.1 reading.
Deviation Impact on GBPUSD
Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 45 pips in deviations up to 2 to -2, although in some cases, if notable enough, a deviation can fuel movements of up to 70 pips.
How UK construction PMI Impact GBPUSD
Technically, the pair looks to extend the recent rally towards the 1.3040/50 (50-DMA/ key psychological support) in a bid to test the 1.3092 (Oct 22 high). On the flip side, a break below 1.2987/85 (daily low/ 20-DMA), GBPUSD could retest 1.2933 (daily pivot) en route 1.2900 (round number).
A downbeat UK construction PMI report cannot be ruled today, given Thursday’s awful manufacturing PMI reading.
The construction PMI has widely shown the similar behavior as the manufacturing and services PMIs, analysts Societe Generale pointed out in a research note.
About the UK Construction PMI
The PMI Construction released by the Chartered Institute of Purchasing & Supply and Markit Economics shows business conditions in the UK construction sector.
It is worth noting that the construction sector does not influence, either positively or negatively, the GDP as much as the Manufacturing sector does. A result that values above 50 signals appreciates (or is bullish for) the GBP, whereas a result that values below 50 is seen as negative (or bearish).
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