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

UK construction PMI overview

The UK construction PMI for February is due for release today at 0930GMT, with the figure expected to show no growth, however, will remain in the expansion territory, with a 52.0 print seen in January.

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 positive surprise in the manufacturing sector activity report would offer the much-needed respite to the GBP bulls, sending the rate back above 1.23 handle. On the other hand, a disappointing PMI reading could knock-off the GBP/USD pair below Jan-end lows near 1.2250 region, as the bears would eye next target of 1.2200.

A weaker print of the construction sector PMI may not come as a surprise, given yesterday’s dismal manufacturing PMI report, as the construction PMI has widely shown the similar behavior as the manufacturing and services PMIs, Analysts Societe Generale remarked in a research note.

Key notes

GBP/USD seems vulnerable to extend the bearish slide if breaks below 1.2250

“The pair traded with bearish bias for the fifth consecutive session as traders now look forward to the release of UK construction PMI print, for some immediate respite during European trading session.”

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).