support@instantforexsupport.com

Forex Broker News

avtar

WHEN IS THE UK SERVICES PMI AND HOW COULD IT AFFECT GBP/USD?

The UK services PMI overview

 

The UK economy will release its December services PMI later in the European session at 0930GMT, which is expected to remain steady at 53.8.

 

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 50 pips in deviations up to 2.5 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, “A convincing break below the 1.3500-1.3490 region is likely to accelerate the corrective slide back towards 1.3435-30 zone en-route the 1.3400 handle and 1.3385 horizontal support. On the upside, momentum back above mid-1.3500s might continue to confront fresh supply near the 1.3600 handle, above which the pair seems all set to extend its near-term upward trajectory towards September swing highs resistance near the 1.3655-60 region (2017 yearly tops),” Haresh Menghani, Analyst at FXStreet explains.

 

Key notes

 

UK: Services PMI to edge just slightly higher to 54.0 in December - TDS

 

GBP/USD: Recovery to gain traction above 1.3530, awaits UK PMI

 

About the UK services PMI

 

The PMI service released by both the Chartered Institute of Purchasing & Supply and the Markit Economics is an indicator of the economic situation in the UK services sector. It captures an overview of the condition of sales and employment. It is worth noting that the UK service sector does not influence, either positively or negatively, the GDP as much as the Manufacturing PMI does. Traders want the highest possible reading as that will be taken as positive for the GBP. Any reading above 50 signals expansion, while a reading under 50 shows contraction.

Read More

RELATED ITEMS


Do you Want Know more about Forex Brokers?