The Pound Sterling is lower against the US Dollar, after today’s release of disappointing construction data. Markit’s PMI Construction report for March fell to 47.0 in March, a solid decline from February’s 51.4 and far larger than analysts had predicted in the latest polls. For reference, figures below the 50.0 threshold suggest a contraction in that sector; economists point out that the construction sector is but a small portion of the UK economy. Despite the figures, the Pound managed to hold on to recent gains and moved higher, generally as a result of the Dollar’s overall softness say currency strategists.
As reported at 11:26 am (BST) in London, the GBP/USD was trading at $1.4037, down 0.17% and falling away from the session peak of $1.4097 while the low is at the current $1.4037. The EUR/GBP is trading at 0.87479 Pence, a gain of 0.2228%; the pair has ranged from a session trough of 0.87153 Pence to a peak of 0.87515 Pence.
More Data Needed to Gauge BOE
Analysts still believe that the numbers today won’t sway the Bank of England’s Monetary Policy Committee to the extent that they won’t begin a tightening cycle at next month’s policy meeting. However, given today’s disappointment, what will be critical for their consideration will be the upcoming earnings and inflation data which is due mid-month.