The Sterling pound today rallied higher against the US dollar following the release of upbeat Markit/CIPS UK Construction PMI data in the early European session. The pound’s rally drove the GBP/USD currency pair higher even as uncertainty loomed over the Brexit negotiations.
The GBP/USD currency pair today rallied from a low of 1.3114 to a high of 1.3207, but was on a downtrend at the time of writing.
The currency pair rallied higher after the release of the Markit/CIPS UK Construction PMI, which beat expectations by coming in at 53.1 versus the consensus estimate of 52.5. The PMI print released today came in at a record high last witnessed 7 months ago. Earlier today, an external member of the Bank of England‘s Monetary Policy Committee Michael Sunders stated on CNBC that the effect of bad weather on the UK economy was temporary. He further stated that the spare capacity in the British economy was almost fully utilized and that average wages were steadily rising. Sounders’ comments boosted the British pound.
The uncertainty regarding the outcome of Brexit negotiations is also having a negative impact on the UK economy as businesses are unwilling to invest until there is clarity regarding the Brexit talks.
The currency pair’s short-term performance is likely to be influenced by the release of US durable goods orders and factory orders scheduled for later today.
The GBP/USD currency pair was trading at 1.3183 as at 12:53 GMT having risen from an initial low of 1.3114. The GBP/JPY currency pair was trading at 145.91 having rallied from a low of 145.27.
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