British Construction PMI Jumps, GBP/USD Unconviced

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According to the latest purchasing managers’ index for October, Britain’s construction sector is growing nicely once again: the score rose from 50.1 to 53.9 points. Early expectations stood on no change. 50 points is the line that separates contraction from expansion. 

GBP/USD rose a bit at first, but then dropped back down to around 1.60. The debt crisis in Europe still looms over all “risk” currencies, and the pound is no exception.

Yesterday, manufacturing PMI was a bitter disappointment, as it fell to contraction zone. The drop in manufacturing PMI for October erased the positive impact from the positive GDP report for Q3: according to the initial report, Britain’s economy grew by 0.5% in the third quarter.

Tomorrow we have the services PMI, perhaps the most important indicator in the series. See how to trade this event with GBP/USD.

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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 the 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.