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UK Construction PMI rises to 64.6, highest since 2007 –

UK construction PMI rose to 64.6 points in January, reflecting steaming hot growth. Markit’s purchasing managers’ index for the British construction sector was expected to slide just a bit, from 62.1 to 61.6 points, still reflecting very strong growth. These levels are good news for the pound, but could show that growth is totally concentrated in the construction sector. The score is the highest since August 2007, when it scored 64.8 points – nearly 6.5 years.

GBP/USD suffered badly in recent days, falling from the area of 1.6440 all the way down to 1.6260. It traded just under 1.63 before the release. It is now trading at 1.6336.

GBP/USD reaction:

GBPUSD recovers after strong construction PMI February 4 2014 forex trading 30 minute chart

Yesterday, the manufacturing PMI came out just below expectations. The small miss was enough to extend the sell off sterling, which also lost ground against the euro.

Tomorrow we have the PMI for the largest sector: services. For more on the pound, see the GBP dollar forecast.

Yohay Elam

Yohay Elam

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.