Pound Higher of Upbeat PMI
The Pound Sterling had already been poised for its 4th straight day of gains ahead of the PMI release, and the GBP/USD pair moved higher afterward on the upbeat report. Markit Economics reported that the Purchasing Managers' Report for the Construction industry for May was a flat reading of 52.5, which was better than the forecasts which called for a drop to 52.0. The pair has been on an upward trend since last Friday's release of the PMI Manufacturing report which also had a higher than expected reading.
As reported at 10:57 am (BST) in London, the GBP/USD was trading at $1.3384, up 0.28% and off the session peak of $1.3399 while the low is at $1.3341. The EUR/GBP is trading at 0.87635 Pence, a gain of 0.24972%; the pair has ranged from a session low of 0.87310 Pence to a high of 0.87658 Pence.
Euro Lifted by Relief Rally
The Euro was lifted after FX traders heaved a sigh of relief that Italy's new coalition government has no intention of exiting the Euro-area nor calling for a snap election. That news helped to improve overall risk sentiment for the common currency. The EUR/USD was trading at $1.1736, a gain of 0.66%; the pair earlier hit a peak of $1.17373.