Trade Desk Thoughts - U.K. Construction PMI

U.K. Construction PMI Actual 38.8, Expected 39.0, Previous 40.5

Release Explanation: The activity level of Purchase Managers, they are surveyed on production, employment, inventories, orders, delivery data. The PMI is split into reads on Manufacturing, Service, and Construction industries. A read over 50 denotes growth. As an indicator of economic performance the PMI has the ability to easily affect currency valuations as Institutions re-align existing positions, or build new, on the strength of these reports.

Trade Desk Thoughts: The construction PMI fell in August much lower than expected, 38.8 compared with analyst expectations of 39.0. The released number still denotes the weak period the U.K. housing and construction market is enduring, showing the sector contracted for the seventh consecutive month. The number released for the month of August was left unrevised at 40.5.

Forex Technical Reaction: The pound had a weak response to the news release, moving less than 10 pips. The pair is trading flat, even though earlier, it tested TheLFB S1.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.