According to the latest purchasing managers’ index for October, Britain’s construction sector is growing nicely once again: the score rose from 50.1 to 53.9 points. Early expectations stood on no change. 50 points is the line that separates contraction from expansion.
GBP/USD rose a bit at first, but then dropped back down to around 1.60. The debt crisis in Europe still looms over all “risk” currencies, and the pound is no exception.
Yesterday, manufacturing PMI was a bitter disappointment, as it fell to contraction zone. The drop in manufacturing PMI for October erased the positive impact from the positive GDP report for Q3: according to the initial report, Britain’s economy grew by 0.5% in the third quarter.
Tomorrow we have the services PMI, perhaps the most important indicator in the series. See how to trade this event with GBP/USD.Get the 5 most predictable currency pairs