We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
  • The @ecb will likely boost its Pandemic Emergency Purchase Program at Thursday’s meeting of its Governing Council; a move that could give the #Euro a lift. Get your currencies market update from @MartinSEssex here: https://t.co/I4PbmJNG1z https://t.co/hu6Ld1KdDB
  • $GBPUSD doesn’t have the cleanest set of technical indications, but #USD may give indications if it can break its trading range via the $DXY. Get your currencies market update from @PaulRobinsonFX here: https://t.co/PrC9wAaXvU https://t.co/vHYHflwqR3
  • The ongoing contraction in US production may keep #oilprices afloat in June as crude output falls to its lowest level since October 2018. Get your crude #oil market update from @DavidJSong https://t.co/jj1bMLX0DF https://t.co/O9NOqbfHkb
  • watching the #SpaceX launch🍿
Disappointing UK PMI for Construction Briefly Drives Pound Lower

Disappointing UK PMI for Construction Briefly Drives Pound Lower

2013-04-03 09:09:00
Benjamin Spier, Technical Strategist
Share:

THE TAKEAWAY: UK PMI for construction disappoints expectations at 47.2 -> Markit says good services PMI needed to avoid a technical recession -> Pound declines briefly

The Purchasing Managers’ Index for construction in the United Kingdom rebounded from a 3-year low, according to Markit. The PMI was reported at 47.2 in march, disappointing expectations for 48.0, but an improvement from the three year low in February at 46.8. The PMI has remained below 50.0, and therefore indicated a contraction in construction activity, for the past five months.

Markit reported that anecdotal evidence pointed to a combination of subdued underlying demand and bad weather as the reason for the lower construction output in March. Residential construction output rose at a marginal pace in February, while commercial activity decreased for the seventh of the past eight months. The monthly decline in jobs in the construction sector was the first in 2013.

The UK GDP declined 0.3% in Q4, and is now one quarter away from entering a triple dip recession. Combined with the weak manufacturing PMI for March, Markit reported that only a good performance in the services sector could prevent the UK from entering the technical recession. Worse than expected PMI’s are Pound negative, as they suggest worsening economic growth in the coming months.

That is why the Pound declined temporarily against the US Dollar following the release, however the pair soon erased most of those losses and returned back above 1.5100. Focus in Pound trading may be set on tomorrow’s BoE meeting. Based on expectations, if the MPC votes to keep monetary stimulus as is, the decision may be perceived as Pound positive. Resistance for GBP/USD may now be provided at 1.5200, which is the neckline of a possible inverse head and shoulders pattern. Support may be provided by the key 1.5000 level.

(New to FX? Watch this free introductory course.)

GBPUSD Daily: April 03, 2013

Disappointing_UK_PMI_for_Construction_Briefly_Drives_Pound_Lower_body_gbpusd.png, Disappointing UK PMI for Construction Briefly Drives Pound Lower

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.