How Does UK Services PMI Impact GBPUSD pair? When is it released? Stay updated in the following Analysis.
5 September, OctaFX – The UK economy will release its August services PMI later in the European session at 08:30 GMT, which is expected to come in at 53.9 versus 53.5 booked in July.
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 50 pips in deviations up to 2.5 to -2, although in some cases, if notable enough, a deviation can fuel movements of up to 70 pips.
How Does UK Services PMI Impact GBPUSD?
Haresh Menghani, Analyst at FXStreet explains:
“A fresh wave of weakness might continue to find support near the 1.2800 handle, below which the pair is likely to accelerate the fall towards 1.2765 intermediate support en-route the 1.2700 round figure mark.
Alternatively, any meaningful up-move is likely to confront fresh supply near the 1.2900 handle (38.2% Fibonacci retracement level), which if cleared might trigger an additional short-covering move back towards 23.6% Fibonacci retracement level resistance near mid-1.2900s.”
About the UK services PMI
The PMI service released by both the Chartered Institute of Purchasing & Supply and the Markit Economics is an indicator of the economic situation in the UK services sector. It captures an overview of the condition of sales and employment.
It is worth noting that the UK service sector does not influence, either positively or negatively, the GDP as much as the Manufacturing PMI does. Traders want the highest possible reading as that will be taken as positive for the GBP. Any reading above 50 signals expansion, while a reading under 50 shows contraction.
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