{"id":68988,"date":"2015-03-04T06:30:30","date_gmt":"2015-03-04T11:30:30","guid":{"rendered":"http:\/\/countingpips.com\/?p=68988"},"modified":"2015-03-04T07:04:44","modified_gmt":"2015-03-04T12:04:44","slug":"sterling-drops-following-pmi-services-miss","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/03\/sterling-drops-following-pmi-services-miss\/","title":{"rendered":"Sterling Drops Following PMI Services Miss"},"content":{"rendered":"
March 4, 2015<\/div>
\r\n<\/div><\/div>

Article by ForexTime<\/a><\/p>\n

The GBP\/USD dropped following the UK services, purchasing managers index, which missed expectations, in February. The composite PMI also managed to rise to a three-month high of 57.0 thanks to strong manufacturing and construction inputs. Markit estimates that the UK economy is growing at a slightly faster pace than in Q4, forecasting Q1 GDP growth of 0.6% quarter over quarter after 0.5% in Q4. The take away from the BoE policy perspective is rising wages, which will up the ante with regard to tightening arguments.<\/p>\n

The UK Markit February services PMI unexpectedly dipped to 56.7 from 57.2, compared to a mean forecast for a rise to 57.5, and the outcome also contrasts the much better than forecast manufacturing and construction PMI surveys. At 56.7, the service-sector PMI still indicates robust expansion, and above December\u2019s 19-month low at 55.8. The details were also encouraging, with wages and new orders rising, and staff hiring coming in at the second-quickest rate, at 57.3, since record began in 1996.<\/p>\n

Despite the dip in the services PMI, the headline composite PMI managed to rise thanks to the strong manufacturing and construction inputs, to 57.0, which is a three-month high, from 56.9 in January. The dip in the services report comes on the heels of a stronger than expected construction PMI released on Tuesday.<\/p>\n

The UK February Markit construction PMI smashed expectations in rising to 60.1 compared to expectations of a rise to 59, indicating robust expansion in the sector, extending the January reversal from the drop to a 16-month low of 57.4 in December. Growth was seen in all three sub-sectors including residential, commercial, and civil engineering, which all grew by the most since last October on the back of sharp rises in new business volumes.<\/p>\n

The GBP\/USD is testing support levels near 1.5325, and a break would lead to a test of 1.5165.\u00a0 Resistance is seen near the 10-day moving average at 1.5415.\u00a0 Momentum has turned negative with the MACD (moving average convergence divergence) index generating a sell signal.\u00a0 This crossover points to lower futures prices for the exchange rate.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

\"gbp-030415\"<\/a><\/p>\n

 <\/p>\n

\n

\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime The GBP\/USD dropped following the UK services, purchasing managers index, which missed expectations, in February. The composite PMI also managed to rise to a three-month high of 57.0 thanks to strong manufacturing and construction inputs. Markit estimates that the UK economy is growing at a slightly faster pace than in Q4, forecasting […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-68988","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/68988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=68988"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/68988\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=68988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=68988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=68988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}