The UK housing sector is going it alone: a score of 64.2Â points in the Construction PMIÂ shows that this sector continues growing rapidly, in a total disconnect from other sectors.
GBP/USD is ticking higher, but it is unable to recapture the 1.62 level and falling back down.
Markit’s purchasing managers’ index for the construction sector was expected to tick down from 64 to 63.7 points, still reflecting very rapid growth. This sector continues standing out against the others.
GBP/USD traded just above 1.6180 towards the publication. 1.6160 works as support.
Yesterday’s manufacturing PMI ws a big disappointment, as the number reflected minor growth. The most important PMI awaits us tomorrow: the services sector is the UK’s biggest.
The pound has been relatively stable after the volatility related to the Scottish referendum. It has outperformed the euro, but hasn’t been able to beat the dollar, which remains strong despite the recent correction.
The Bank of England convenes next week and they are not expected to change policy. Not yet.
