What's up everyone!!! On March 3rd at 6:30 PM (UTC+9) Markit Group Limited out of Great Britain will again release the result of the Services PMI. This time around I have shown the results of the previous 3 months dating back to December 3, 2010. For those who are unaware, an index rating over 50.0 shows expansion within the services industry. On the other hand, an index rating under 50.0 shows contraction.
The following charts of the GBP/USD & the GBP/JPY show how each Services PMI announcement from last month, January, and December of last year has affected the GBP according to its respective index rating release. Services PMI always moves the GBP 15 minutes before the actual announcement is released.
February 3, 2011 GBP/JPY 15 min. chart; 67-point rise. Actual rating was 54.5 from a forecast of 51.2
February 3, 2011 GBP/USD 15 min. chart; 72-point rise from same actual rating
January 6, 2011 GBP/JPY 15 min. chart; 56-point drop. Actual rating was 49.7 from a forecast of 52.9
January 6, 2011 GBP/USD 15 min. chart; 94-point drop from same actual rating
December 3, 2010 GBP/JPY 15 min. chart; 29-point drop. Actual rating was 53.0 from a forecast of 53.2 but remained above 50.0
December 3, 2010 GBP/USD 15 min. chart; 24-point drop with same actual rating but remaining above 50.0
The forecast for the March 3rd Services PMI is 53.8 from the previous 54.5 in February. For those selling off the GBP, any rating below 50.0 is what you're hoping for : )