U.K’s PMI indicating turnaround in Q4, after manufacturing PMI, GBP now eyes on construction and service PMIs

GBP's gains after yesterday's U.K's upbeat manufacturing PMI number at 55.5 versus previous 51.8, today's focus would be on construction PMI and tomorrow's service PMI that would set a stage for next direction for GBP's major currency crosses.

The report indicates that the U.K. economy could grow up twice as fast in the last three months of the year as it did in the Q3.

Last month saw a astonishingly strong construction survey, with the headline total activity index rising to 59.9 from 57.3, buoyed especially by the residential and commercial sectors.

We look for a pullback to around 58.6 in October, but this would still be well above the 50 growth/contraction level.

The pound rose to the day's highs on Monday after data showing that UK's manufacturing activity grew with a fastest pace in last 16 months bolstering the outlook for Q4 growth.

As a result cable hit highs of 1.5498 up from around 1.5451 ahead of the data.

Hence, for today, UK construction PMI may receive some attention, coming after yesterday's astonishingly strong manufacturing report and before tomorrow's more eagerly awaited services PMI.