How does UK construction PMI impact GBPUSD? When is the PMI for September is due for release? Find out here.
2 October, GKFX –The UK construction PMI for September is due for release today at 08:30 GMT, with the figure expected to come in at 52.5, down from August’s 52.9 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 drop below the 1.3000 (key psychological support) support area in a bid to test the 1.2980/70 (Sept 11 & 12 low). Below which floors open towards the 1.2953 50-DMA. On the upside, a convincing break above 1.3038 (5-DMA), GBPUSD could retest 1.3076/82 (100 & 10-DMA) en route 1.3100 (round number).
An upbeat UK construction PMI report cannot be ruled today, given Monday’s stellar 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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