When is the UK services PMI and how could it affect GBP/USD?
The UK services PMI overview
The UK economy will release its November services PMI later in the European session at 0930GMT, which is expected to ease to 55.0 versus 55.6 booked last.
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?
Haresh Menghani, Analyst at FXStreet notes: “From a technical perspective, the pair once again met with some fresh supply near mid-1.3500s, but the subsequent price action now seems to suggest that the bullish momentum might still be far from over. Hence, bulls would now be looking for a follow-through buying interest beyond the mentioned hurdle, above which the pair seems all set to accelerate the up-move towards 1.3580 horizontal resistance en-route the 1.3600 handle and recent swing highs barrier near the 1.3655-60 region.”
“On the flip side, any corrective slide might continue to find immediate support near the 1.3400 handle, below which the corrective slide could get extended towards mid-1.3300s. Any follow-through weakness might now be limited and is likely to find strong buying interest near the 1.3300-1.3290 region,” Haresh adds.
UK: Expect further gains in services PMI to 56.0 – TDS
Market movers today – Danske Bank
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.