A significant disappointment for the UK’s construction sector: the PMI dropped by nearly three points to 51.9, also way below expectations.
GBP/USD reacted with a drop from 1.3240 to 1.3225, but seems to bounce. While the sector is relatively small, the miss is quite massive. Is it a one-off?
Markit’s construction PMI for the UK for July was expected to show a small deceleration of growth: a score of 54.5 against 54.8 expected. This is the second out of three PMIs.
GBP/USD was moving higher ahead of the publication. Were markets front-running a strong outcome?
Yesterday’s manufacturing PMI slightly beat early expectations. The big event on the agenda is the BOE meeting tomorrow, aka “Super Thursdayâ€.
Cable’s rise in recent weeks was mostly based on the weakness of the US dollar rather than GBP strength. The pound did not manage to gain against the soaring euro.
More:Â Will the BOE send GBP higher?
