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UK construction PMI falls to 55 – GBP pressured

The second PMI release is not a charm: the UK’s construction sector is  seeing slower growth according to Markit’s PMI: a score of 55 points,  significantly below 57.5 expected.

GBP/USD is  extending its slide, which began before the publication.

See how to trade the  services PMI with GBP/USD

Markit’s purchasing managers’ index for the construction sector carried expectations for  a score of 57.5 points, similar to 57.8 seen beforehand. This reflects strong growth in the sector that has led the UK economy forward.

GBP/USD traded around 1.4360 towards the publication,  sliding from the highs.

Yesterday, the  manufacturing PMI  came out better than expected with 52.9 points.  While the score still means slow growth, the better than expected number in an environment of poor manufacturing growth worldwide (the US, China, the euro-zone, etc.) gave the pound some much needed back wind that lifted it from the lows.

Tomorrow we will get the third and the most important release of all: the services PMI. This publication always rocks the pound as services is the biggest sector.

More:  Elliott Wave Analysis on GBPUSD

GBPUSD falling on construction PMI February 2 2016

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.