The Pound Sterling remains close to a 11-month peak versus the US Dollar despite a disappointing reading from the PMI Construction survey. According to Markit economics and the UK’s Chartered Institute of Purchasing and Supply July’s PMI reading came in at 51.9, still in expansion territory, well off analysts’ forecasts of a slight fall to 54.5 from June’s 54.8. Yesterday, the manufacturing sector PMI came in with an unexpectedly upbeat reading of 55.1 and markets were undoubtedly hopeful for a repeat. Analysts say that despite today’s data, the Pound’s recent resurgence is largely a result of a weakened greenback.
As reported at 10:29 am (BST) in London, the GBP/USD was trading at $1.3238, a gain of 0.23%; the pair had earlier hit a session peak of $1.32469 while the low is currently at $1.31901. The EUR/GBP is moving away from its opening price at 0.8946 Pence, a gain of 0.10%; the pair has ranged from a session trough of 0.89334 Pence to a peak of 0.89676 Pence.
Markets Eyeing US Labor Figures
While the US Dollar is struggling for traction, markets are eyeing today’s release of ADP jobs data which is often heralded as an indication for Friday’s labor figures released from the US Department of Labor. Forecasters are calling for the ADP employment change to show 185,000 new jobs, versus 158,000 last month. On Frida, the Non-Farms Payroll figures for July are expected to show a decline in new, private sector jobs to 183,000 from 222,000 in June. The labor data is used by the Federal Reserve to determine monetary policy, as part of its dual mandate of price stability and full employment. Analysts are also forecasting a drop in the unemployment rate to 4.3%.