When is UK construction PMI and how could it affect GBP/USD?

UK construction PMI overview

The UK construction PMI for August is due for release today at 0830GMT, with the figure expected to come in a tad better at 52.0, when compared to July’s 51.9 points.

Deviation impact on GBP/USD

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 could affect GBP/USD?

A bigger-than expected increase in the construction sector activity report would provide much-needed impetus to the GBP bulls, which would send the rate back higher towards 1.3000 levels. On the other hand, a downside surprise in the PMI reading could knock-off the GBP/USD pair to test 1.29 handle.

A solid improvement in the construction PMI report cannot be ruled out, given Friday’s solid manufacturing sector activity numbers, which surprised markets to the upside. The construction PMI has widely shown the similar behaviour as the manufacturing and services PMIs, analysts Societe Generale pointed out in a research note.

Key notes

UK construction PMI to rise two points to 53.0 - TDS

GBP/USD Forecast: maintains neutral bias, eyeing UK PMI for some impetus

About 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).