UK Construction PMI Highest Since 2007 – GBP/USD Tests

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Markit’s Construction PMI jumped to 59.1 points, exceeding expectations of a score of 58.4 and advancing from the already high level of 57 seen last month.

GBP/USD rose to test 1.56, while EUR/GBP dipped below 0.8450.

The figure is the best one seen since September 2007, almost 6 years. The construction sector boomed and then suffered a bust. During the past year or two, London has seen a lot of construction: some related to the Olympic Games but also foreign investment and higher demand.

Yesterday, manufacturing PMI exceeded expectations and this sent GBP/USD towards the same 1.56 level, but there was no follow through. The pound did manage to gain against the euro. Will it conquer 1.56 this time?

EUR/GBP continues its descent, also thanks to weakness in the euro.

The real hurdle is 1.5710 – a level seen by GBP/USD twice this year. At this time, 1.56 is still capping the pair, even though it broke higher. For more, see the GBPUSD forecast.

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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.

5 Comments

  1. Pingback: UK Construction PMI Highest Since 2007 – GBP/USD Tests 1.56 - James Invest | James Invest

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