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

UK services PMI overview

The UK economy will release its March services PMI later in the European session at 0830GMT, which is forecast to come in a tad better from February’s 53.3 to 53.5 last month. 

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?

An improvement in the services sector activity report would offer the much-needed boost to the GBP bulls, sending the rate back towards 1.25 handle. On the other hand, a below estimates PMI data could knock-off the GBP/USD pair towards the next key support located at 1.2330 levels.

A negative print of the services sector PMI may not come as a surprise, given the recent manufacturing and construction PMI disappointment.

Key notes

UK: PMI service index could have moved up marginally to 53.7 in March – Danske Bank

UK: Services PMI to reverse its previous two months’ losses - 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.