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

The UK construction PMI overview

The UK construction PMI for April is due for release today at 0830GMT, with the figure expected to come in stronger at 50.5 when compared to March’s 47.0 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 the 1.3550 support area, with the downside to accelerate on an unexpected drop in the UK construction PMI reading, opening doors for a test of the last, below which the next target lies at 1.3457 (Jan lows). Should the data meet expectations or arrive firmer, the spot could extend its corrective move higher and regain the 1.3637 20-DMA, beyond which 1.3657 (daily pivot) could be tested.

A downside surprise in the construction PMI data cannot be ruled out, given yesterday’s bigger-than-expected drop in the manufacturing sector PMI. 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

GBP/USD Forecast: test of 200-DMA support near 1.3530 looks a distinct possibility

GBPUSD: Cable once again remained under heavy pressure on Tuesday

About the 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).