Yet another positive figure from the UK results in another jump in GBP/USD: UK construction PMI was expected to dip below 60 points but rose to 62.6, reflecting very strong growth.
GBP/USD is at a new high around 1.7175 and EUR/GBP sinks — more coming
This follows a better than expected manufacturing PMI yesterday. The construction sector led the recovery in this current round and even triggered fears of an unbalanced growth. There are still worries about a housing bubble, especially in London.
The employment sub component in this purchasing managers’ index is at the highest since the series began back in 1997. The housing activity sub component is at 66.6 points, a devilish number for the “devil’s currency”.
Is cable nearing overbought territory?
EUR/GBP fell to a new low of 0.7950. The pound is at multi year highs against some Nordic currencies.
For cable, the round number of 1.72 is the next stop. For more, see the GBPUSD prediction.
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