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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