January 2018 UK Markit/CIPS contruction PMI 2 February 2018
- Prior 52.2
- Residential building activity slips into decline
- Contraction in new business reported
A disappointing read from this sector into the new year, and we’re skirting with contraction. GBPUSD has dipped some 18 pips to 1.4208. It’s not all bad news though;
Despite softening marginally since December, cost pressures remained intense in January. Inflation in input costs was driven by a variety of materials such as bricks, copper and timber Sub-contractor usage increased during January, thereby ending a ten-month sequence of decline.
Furthermore, the latest expansion was the strongest seen since November 2016 In response, sub contractor availability fell sharply
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could give us a pullback to the 1.42 level then a buying opportunity for a rally to the 1.50 maybe?
At the moment we need to see if 1.42 is going to resist. It’s already tried to in this last 15 candle. I wouldn’t worry about 1.50 just yet though as we can’t even get above 1.4275 😉
looks like 1.42 will hold
Bingo.
Another crazy day eh?
you were spot on with your comment not to worry about the 1.50 level just yet seems the NFP put paid to that idea, for a while anyhow.
There’s going to be a lot of Brexit noise coming back into the pound now and until the March EU summit where phase 2 gets decided. The risk from now is for negative headlines so that’s another headwind for gains. I’ll do a post on it a little later today.
mmmmmmm Brexit all adds to the fun I guess!
It’s made trading very tricky, which makes it more dangerous.
it has made it more dangerous as these Brexit shocks seem to come out of nowhere – breaking news stories are hard to predict and play havoc with technical analysis
Very much so John. It’s why I’ve not really traded the pound much since Brexit. It’s one thing trading the fundamentals or central bank but another when there’s big headline risk, and that can be both ways, i.e positive and negative. If I see too much risk in a pair I usually leave it alone until it becomes clearer or I see an opportunity.
I’ve just popped a post up about it now. https://www.forexflow.live/2018/02/05/technical-analysis/heres-why-fresh-brexit-news-could-put-a-strong-top-in-place-in-gbpusd/