The British construction sector didn’t disappoint for a second month in a row. Construction PMI came out exactly as expected: 53.6 points, a slide from last month’s 54 points. GBP/USD is stable above the line it broke earlier.
GBP/USD now trades at 1.6120, slightly down from before the release, but above the 1.6110 line.
The construction sector was relatively stable last month. Growth didn’t slow down in this sector and didn’t disappoint like in services and manufacturing. The score even rose from 53.3 to 54 points. This sector dipped to contraction back in January, but this was a one time event.
On Friday, the manufacturing sector disappointed, and not for the first time. PMI for this sector fell more than expected and weighed heavily on the pound.
Mervyn King and his colleagues are not expected to raise the interest rates on Thursday. Such a move isn’t likely until the next summer.
GBP/USD began the new week on a high note, breaking above the 1.6110 line it struggled to conquer last week. Levels above are 1.62 and the region of 1.6280 to 1.63. Below, 1.60 and 1.5910 provide support.
For more on GBP/USD, see the British Pound forecast.
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