Upbeat PMI fails to Lift Pound
In mid-morning trade in London, the Pound Sterling saw little change versus the US Dollar but gained some ground against the Euro. FX traders were awaiting the release of PMI data for the UK construction sector for the month of October. Markit reported an unexpected improvement in the reading to 44.2, sightly better than the 44.0 that had been predicted, and up from the 43,3 in the previous reading. However, the numbers continue to suggest a contracting construction sector.
The GBP/USD was trading at $1.2919, a loss of 0.1283% as of 11:10 am in London; the pair is moving off the session trough of $1.29093 while the peak was set at $1.20610 for the trading day. The EUR/GBP is higher at 0.8639 Pence, a gain of 0.1043%, while the GBP/JOY was trading at 140.118 Yen, up 0.1036%.
UK Political Uncertainty Weighs Heavily
Analysts say that the economic data will only drive Sterling so far, as market players are waiting to see how the political drama of the UK elections unfold. The general election will be held on December 12th, and though the Conservative Party is currently in favor in the polls, it is far too soon t o call say analysts. With that much uncertainty, FX traders and potential investors are largely sitting the ride out until such time as there is some clarity.