Markit’s purchasing managers’ index for the construction sector dropped to 46.8 points in January. This is the lowest since October 2009. Expectations were for a minor climb from 48.7 to 49.2 points, below the 50 point mark separating growth and contraction.
GBP/USD rose towards the event, reaching 1.5050 from the lows of 1.5020 earlier in the day. The pair is now sliding back down to 1.5027. Update: teh fall continues and cable is approaching the 1.50 line, as seen in the chart.
The 1.50 line was breached on Friday after a very disappointing manufacturing PMI, but was later recaptured. 1.5050 serves as minor resistance. Below 1.50, 1.48 is significant support, but it is quite far out.
For more levels and events, see the British pound forecast.
In addition to the weak figure for the construction sector, the BOE also provided some disappointing news: UK lenders have reduced lending by around 1.5 billion pounds since August 2012.
Tomorrow features the most important PMI, for the services sector. This is by far Britain’s largest sector. See how to trade the services PMI with GBP/USD.
