Sterling Rallies Ahead of BoE, Ignores Falling Construction Index

The Great Britain pound rallied today against most of its major rivals even as the construction sector was expanding at the slowest pace in nearly a year.

The IHS Markit/CIPS UK Construction Purchasing Managers’ Index dropped from 54.8 in June to 51.9 in July — the lowest level since August 2016 and far below analysts’ predictions. The data followed yesterday’s report that showed an increase of the IHS Markit/CIPS UK Manufacturing PMI from 54.2 in June to 55.1 in July, above market expectations. Traders paid little attention to today’s data, though, focusing on the policy meeting conducted by the Bank of England, which started today and will end tomorrow.

GBP/USD rose from 1.3204 to 1.3244 intraday before pulling back to 1.3218 as of 13:01 GMT today. GBP/CHF rallied from 1.2747 to 1.2823, and its session maximum of 1.2845 was the highest since May 16.

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