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

The UK construction PMI overview

The UK construction PMI for February is due for release today at 0930GMT, with the figure expected to tick higher to 50.5 when compared to January’s 50.2 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?

Technically, the pair remains on track to conquer the 1.38 handle, with the upside to accelerate on a positive PMI reading, opening doors towards 1.3837 (5-DMA), above which next target lies at 1.3896/1.3900 (50-DMA/ round number). Should the data disappoint, the spot could reverse course in a bid to test sox-week lows of 1.3712 reached yesterday, below which a test of 1.3613 (100-DMA) becomes imminent.

A negative surprise in the construction PMI data cannot be ruled out, given yesterday’s deceleration in the manufacturing sector activity. The construction PMI has widely shown the similar behaviour as the manufacturing and services PMIs, analysts Societe Generale pointed out in a research note.

However, the UK construction PMI report could play a second fiddle to the UK PM Theresa May’s speech on Britain's post-Brexit relationship with the European Union (EU) scheduled later in the European session.

Key Notes

UK: Construction PMI likely to fall to 49.8 - TDS

GBP/USD - Eyes bull hammer reversal, focus on PM May speech

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).