Pound Falls Following Worse-Than-Expected UK Construction PMI Data
- UK Construction PMI 62.6 vs. Estimated 63.2 in February
- British Pound Falls vs U.S. Dollar After Data Crossed the Wires
- Spotlight Now on This Week’s Bank of England Rate Meeting
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UK Construction PMI gauge-sector activity PMI gauge slipped to 62.6 in February, and missing estimates calling for a print of 63.2. The pace of expansion in construction-sector activity eased from 64.6 in January (highest level since August 2007). The British Pound fell against the U.S. Dollar as the data crossed the wires. However, the move may be reflecting traders’ easing their bets on an early rate hike after the Bank of England unveiled its updated guidance framework on February 12. According to DailyFX strategist Ilya Spivak, the British Pound may come under pressure as soft economic data may direct attention to eroding policy bets.
GBP/USD 5-Minute Chart. March 4, 2014
Charted created by David Maycotte using Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to firstname.lastname@example.org.
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