Construction Can’t Save the Pound
Skerdian Meta • 1 min read
The report for the UK construction sector was just released. We checked some of the websites which provide the economic calendar (we will introduce it soon). All of them display the numbers in black, despite being slightly better than forecasts.
Last month´s PMI indicator was at 52.2 and that´s what the consensus was for this month as well. However, the actual reading came at 52.5. That´s slightly better than expected but not a big deal.
In fact, even the Eurozone has overtaken the UK when it comes to this sector. Actually, it seems a bit strange since the Eurozone is coming from a decade of tough economic hardship, but judging by the economic data of the last 6 months, the Euro land has overtaken most of the developed economies.
Anyway, this report isn´t that great for another reason. The new orders fell and so did the Pound. GBP/USD lost about 35 pips after failing to break the 20 SMA on the hourly forex chart, but most of this is coming from the USD side.