GBP/USD Hit Highest Level Since 2008 As UK Construction Data Surprise
- UK Construction PMI: 62.6 Actual Vs 59.8 Estimated; 60.0 Prior.
- GBP/USD Surges by Over 30 pips, Hits the Highest Level since 2008.
- The Momentum Continues for BOE Rate Hike Speculation.
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The UK Construction PMI for the month of June registered at 62.6, the highest level in four months. Economists had tipped a reading of 59.8, which would have been a decline from the May print of 60.0. The strong reading follows on from the UK Manufacturing PMI that surprised on the upside yesterday, which helped propel the pound higher against US Dollar.
GBP/USD hit a session high of 1.7174, the highest level since 2008, after the issuance of the UK Construction PMI figures. DailyFX Currency Strategist, Ilya Spivak noted that an upside surprise to the UK Construction figure may fuel the British Pound higher as the outcome is likely to feed BOE rate hike speculation.
From a technical standpoint, DailyFX Currency Strategist Ilya Spivak suggests near term support rests at 1.7136 (50% Fib exp.) and resistance at 1.7180 (61.8% Fib exp.). He remains flat for now and watches for a more actionable setup to present itself.
GBP/USD 5 Minute Chart
Chart Created Using FXCM Marketscope 2.0
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Edward Hyon, DailyFX Research Team
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