Earlier, the Pound Sterling was trading near to the recently struck 3½ month trough but an unexpectedly upbeat PMI Construction report helped lift the Pound out of the doldrums. Economists had been forecasting that the Markit PMI Construction would improve to a reading of 50.5 in April, above the March reading of 47.0; the actual reading came in at 52.5, suggesting expansion in the sector. That helped the Pound recover after yesterday’s disappointing Manufacturing sector PMI report.
As reported at 10:52 am (BST) in London, the GBP/USD was trading at $1.366, a gain of 0.35% and not far off the session high of $1.3664 while the low stands at $1.3580. The EUR/GBP is trading at 0.8793 Pence, down 0.2057%; the pair has ranged from a session low of 0.87864 Pence to a peak of 0.88309 Pence.
Brexit Concerns Compound Pound’s Problems
This Pound rally may be short-lived say currency experts who point to concerns over the Brexit negotiations which have undermined Sterling. Disagreements between British lawmakers and the Prime Minister have led to political uncertainty as to the way forward in the negotiations. Moreover, FX traders are concerned that the anticipated rate hike by the Bank of England now might not happen after the latest disappointing economic data.