A significant disappointment for the UK’s construction sector: the PMI dropped by nearly three points to 51.9, also way below expectations.
GBP/USD reacted with a drop from 1.3240 to 1.3225, but seems to bounce. While the sector is relatively small, the miss is quite massive. Is it a one-off?
Markit’s construction PMI for the UK for July was expected to show a small deceleration of growth: a score of 54.5 against 54.8 expected. This is the second out of three PMIs.
GBP/USD was moving higher ahead of the publication. Were markets front-running a strong outcome?
Yesterday’s manufacturing PMI slightly beat early expectations. The big event on the agenda is the BOE meeting tomorrow, aka “Super Thursday”.
Cable’s rise in recent weeks was mostly based on the weakness of the US dollar rather than GBP strength. The pound did not manage to gain against the soaring euro.
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