Sterling Treads Water After Data

By: DailyForex

The Pound Sterling remained close to a 3-month peak versus the US Dollar despite the latest PMI data which showed that growth slowed somewhat in the construction sector in December. Analysts had predicted that the PMI reading would be lower at 52.5 but the actual reading fell short and came in at 52.2, down from November’s 53.1. Economists say that FX traders are generally dismissing what might be considered tepid data and looking instead at the long-term picture as it relates to the UK government obtaining a favorable stance in trade negotiations with the European Union.

As reported at 11:02 am (GMT) in London, the GBP/USD was trading at $1.3576, down 0.12%; the pair earlier hit a session trough of $1.3568 while the peak stands at $1.3613. The EUR/GBP is down 0.183% and trading at 0.88561 Pence; the pair has ranged from a session low of 0.88470 Pence to a peak of 0.88825 Pence.

Dollar Trade Looks to Data, FOMC

In the United States, market players will be looking to the US release of PMI data for the manufacturing sector there. Currently, analysts are predicting a slight decline in the reading to 58.1 from 58.2. Also, a potential market changer is today’s release of the FOMC minutes from the Federal Reserve’s latest policy meeting. Markets are still trying to gauge the possible number of rate hikes that might be put in place later this year. Currently, the EUR/USD is trading at $1.2014, down 0.35%.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.