Today, yet another macroeconomic indicator added to evidences of an improving economy in the United Kingdom. Unlike yesterday though, the Great Britain pound demonstrated anemic reaction to positive news.
The seasonally adjusted Markit/CIPS UK Construction Purchasing Managersâ Index climbed to 49.2 in August from the multi-year low of 45.9 posted in July, though remained in the contraction territory. Yet the sterling’s reaction to the report was muted, unlike yesterday when the currency rallied on the manufacturing PMI. The likely reason for that is reluctance of market participants to engage in trading ahead of very important US non-farm payrolls.
GBP/USD traded at 1.3277 as of 9:20 GMT today after opening at 1.266. GBP/CHF was at about 1.3015 after opening at 1.3000.
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