Forex News – Sterling jumps after better UK construction PMI
August 2, 2013 9:07 am
Sterling jumped against the dollar and euro after UK construction PMI beat forecasts and hit a three-year high in July. Markets reacted positively to the data as it comes on the back of strong manufacturing PMIs from Thursday.
The data is therefore suggesting the British economy is improving and starting the third quarter on a stronger footing.
The survey was compiled by Markit and shows the construction PMI rose to 57.0 in July, up from 51.0 in June and its strongest level since June 2010. Expectations were for a reading of 51.6.
The main driver behind the increase in the PMI was residential construction, which has been the target of government incentives to stimulate the UK economy. Commercial construction and civil engineering also grew having contracted earlier this year.
GBPUSD jumped from pre-data $1.5144 to $1.5175 within a couple of minutes of the data which was released at 0830 GMT and is now up around 0.3 percent on the day.
EURGBP dropped to a session low of 87.10 pence from 87.30 pence beforehand.
Sterling jumped against the dollar and euro after UK construction PMI beat forecasts and hit a three-year high in July. Markets reacted positively to the data as it comes on the back of strong manufacturing PMIs from Thursday.
The data is therefore suggesting the British economy is improving and starting the third quarter on a stronger footing.
The survey was compiled by Markit and shows the construction PMI rose to 57.0 in July, up from 51.0 in June and its strongest level since June 2010. Expectations were for a reading of 51.6.
The main driver behind the increase in the PMI was residential construction, which has been the target of government incentives to stimulate the UK economy. Commercial construction and civil engineering also grew having contracted earlier this year.
GBPUSD jumped from pre-data $1.5144 to $1.5175 within a couple of minutes of the data which was released at 0830 GMT and is now up around 0.3 percent on the day.
EURGBP dropped to a session low of 87.10 pence from 87.30 pence beforehand.
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