The British construction sector is still steaming ahead on all engines: the construction PMI rose to 64 points, significantly better than expected.
GBP/USD is recovering but not really rallying.
Update: cable is fading the better than expected read and is now sliding below 1.6570.
Markit was expected to report a slide in the purchasing managers’ index for the construction sector to 61.5 points in August from 62.4 in July. The construction sector has been ahead of other sectors.
GBP/USD was trading lower, around 1.6570 before the publication and reached 1.6578, but retreats. It is important to note that the US dollar is strengthening against other currencies at the moment.
The pound had a good beginning to the week, holding on to late gains on Friday. However, a fresh USD storm caught the pound unguarded and sent it down.
This is the second PMI out of three. Yesterday’s manufacturing PMI disappointed yesterday with 52.5 points, the lowest in over a year. Tomorrow we have the report for the UK’s largest sector: services.
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