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UK Construction PMI rises to 55.9 – GBP/USD climbs

A better than expected figure for Britain: the  construction PMI rose to 55.9 points in May.  It was  expected to tick up from 54.2 to 55 points. The housing sub-component stands at 59.4 points.

GBP/USD  is rising from the lows and has reached 1.5220. Update: the pair is moving higher to 1.5230.

More data: net lending to individuals also came out better than expected at 2.9 billion instead of 2.3 predicted. Mortgage approvals moved up to 58K, higher than 64K that was on the cards. M4 Money Supply met expectations with a rise of 0.4%.

All in all, this was a positive data batch. Recent figures from the UK were quite mixed and the general notion is that the economy is growing nicely, but not as rapidly as beforehand.

Yesterday, things looked less positive with manufacturing PMI  hitting 52 points, lower than 52.7 expected. Tomorrow we get the PMI for the most important sector: services. The Bank of England’s rate decisions have become non-events.

More:  Sell EUR/GBP targeting 0.6770 – Barclays trade of the week

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.