Some good news for a change: Markit’s construction PMI for the UK rose to 57.8 points, better than expected. This makes the score 1:1 in PMIs. The most important one still awaits us tomorrow.
GBP/USD is making an attempt to recover at low ground.
The UK construction purchasing managers’ index was expected to rise from 55.3 in November to 56 in December. This sector was surging ahead and leading the recovery but has now joined the slowdown.
GBP/USD was hugging the 1.47 level before the release, bouncing after a fall to lower ground.
Yesterday’s manufacturing PMI disappointed, but manufacturing looks poor all over the world. The services sector figure due tomorrow is the most important one for the British economy.
The Bank of England convenes next week and everybody expects no change in rates. The big question is: will we have a unanimous vote for leaving the rates unchanged or will one member still support a hike. Recent figures from the UK and some dovish commentary from the BOE have sent rate hike expectations all the way to 2017.
The BOE was seen as raising rates after the Fed, but this notion faded out a few months ago.
