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FxWirePro: UK IHS Markit/CIPS construction PMI slips to 58.7 in July, misses consensus at 64

GBP/USD chart - Trading View 

Time (GMT) Event Actuals Consensus  Previous
0830 UK Markit Construction PMI (July) 58.7 64 66.3

UK IHS Markit/CIPS construction PMI fell to 58.7 in July from 66.3 in June, missing consensus at 64. 

About UK Construction PMI

In the United Kingdom, the Markit / Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Managers (PMI) Index measures the performance of the construction sector and is derived from a survey of 170 construction companies.

The data is an indication of business conditions and overall economic performance in the nation. Any reading above 50 indicates expansion in the construction industry, signals upside (or is bullish) for the GBP; a reading below 50 indicates contraction and is seen as negative (or bearish) for the GBP.

The data majorly gives an indication about the health of the construction section in the UK and can be seen as a leading indicator of overall economic performance. It is worth noting that the construction sector does not influence, either positively or negatively, the GDP as much as the Manufacturing sector does.

GBP/USD Spot Analysis

GBP/USD was trading at 1.3916 before the data was released and edges slightly lower after the data miss. Price action was capped between major moving averages. Breakout will provide clear directional bias. 

Main focus is on Bank of England monetary policy meet due later today. The pair may find support amid a short-covering squeeze if the MPC remains split on QE. 

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