UK Pound Pulls Back After Earlier Gains

UK pound is heading lower right now, pulling back after earlier gains. Good economic data provided some support for the sterling, but now profit taking has taken its toll, and lower equities are weighing on the pound.

The latest economic data out of the United Kingdom has been better than expected. Markit Construction PMI came in at 64.2, when many expected it to fall to 63.5. Not only that, but the recent GDP revision for the second quarter brought the number up to 0.9 per cent, which is better than expected.
With the good news coming in, and speculation that the Bank of England will have to reduce its easing measures soon, sterling made a good showing earlier. However, the rally for the pound has been brief.
Sterling is now down against most of its major counterparts. There are thoughts that it is due largely to profit taking, as well as a touch of wait and see as we look for the next ECB announcement and as we wait for September nonfarm payrolls data in the United States, due out tomorrow.
At 10:48 GMT GBP/USD is lower, down to 1.6153 from the open at 1.6186. EUR/GBP is up to 0.7824 from the open at 0.7799. GBP/JPY is down to 175.3440 from the open at 176.2850.

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