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
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