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British Pound Hit By Dollar Weakness Not Softer Economic Data

Thursday, 01 November 2007 20:40:35 GMT

Written by Kathy Lien, Chief Strategist

Although it would be easy to say that the weakness in the British pound today was attributed to the softer manufacturing PMI and CBI Distributive Trades report, that is not the case. 

The pound actually rallied after the numbers even though manufacturing conditions were the slowest in a year and distributive trade, which is a reflection of retail sales dropped from 12 to 10 last month.  Construction sector PMI is due for release tomorrow and that is expected to be weak as well, but the price action of the British pound will be determined by US non-farm payrolls and not UK economic data. 

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