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

UK services PMI overview

The UK economy will release its September services PMI later in the European session at 0830GMT, which is expected to remain from August’s 53.2.

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: “Any up-move beyond 1.3280-85 level could lift the pair back above the 1.3300 handle but seems more likely to meet heavy supply at 38.2% Fibonacci retracement level resistance near 1.3320 level.” 

On the flip side, 50% Fibonacci retracement level, near the 1.3215-10 region, remains immediate support to defend, which if broken is likely to accelerate the fall towards 50-day SMA near the 1.3135 region en-route 61.8% Fibonacci retracement level support in the 1.3100 neighborhood,” Haresh adds.

Key notes

UK services PMI and Yellen speech amongst market movers today – Danske Bank

UK: Services PMI to remain unchanged at 53.2 in September - TDS

About 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.