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

UK construction PMI overview

The UK construction PMI for September is due for release today at 0830GMT, with the figure expected to come in a tad weaker at 50.8, when compared to August’s 51.1 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 test 1.3200 support, with the downside to extend on a bearish PMI report, opening doors for towards 1.3162 (Sept-mid lows), below which next targets lie at 1.3123 (55-DMA). In case of an upside surprise, the spot could head back towards 1.3300 (round number), beyond which doors open up for a test of 1.3356 (5-DMA) and 1.3409/20 (10 & 20-DMA).

A bigger-than expected drop in the construction PMI data cannot be ruled out, given Monday’s poor manufacturing sector activity numbers, which disappointed markets. The construction PMI has widely shown the similar behaviour as the manufacturing and services PMIs, analysts Societe Generale pointed out in a research note.

Key notes

UK: Focus on construction PMI and Conservative Party’s conference - TDS

GBP/USD neutral below 1.3225 – UOB

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).