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

UK construction PMI overview

The UK construction PMI for June is due for release today at 0830GMT, with the figure expected to come in a tad weaker at 55, when compared to May’s 56 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?

A positive surprise in the construction sector activity report would provide much-needed impetus to the GBP bulls, which could lift the rate back above 1.30 handle. On the other hand, a bigger-than expected drop in the PMI reading could knock-off the GBP/USD pair to test 1.2900 levels.

A worse-than expected reading in the construction sector PMI cannot be ruled out, given yesterday’s awful manufacturing PMI report, as the construction PMI has widely shown the similar behaviour as the manufacturing and services PMIs, analysts Societe Generale remarked in a research note.

Key notes

GBP/USD Forecast: turning bearish again?

Haresh Menghani, Analyst at FXStreet notes, “Currently hovering around mid-1.2900s, traders now look forward to the release of UK construction PMI for some fresh impetus during European trading session on Tuesday.”

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).