Release Explanation: Measures 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 U.K. Service PMI beat analysts’ expectations for a fourth consecutive month. However, the release still shows the service side of the economy has contracted for more than eleven consecutive months, but things are starting to look better. The PMI report only compounds the economic woes, as a staggering percentage of the U.K. economy is service based.
Forex Technical Reaction: The pound rose 140 pips from the low of the early European session, helped by better than expected news reports. Currently, the pound is trading near the highest value since February