TheÂ Sterling pound today rallied higher against theÂ US dollar following theÂ release ofÂ upbeat Markit/CIPS UK Construction PMI data inÂ theÂ early European session. TheÂ pound’s rally drove theÂ GBP/USD currency pair higher even asÂ uncertainty loomed over theÂ Brexit negotiations.
TheÂ GBP/USD currency pair today rallied from aÂ low ofÂ 1.3114 toÂ aÂ high ofÂ 1.3207, but was onÂ a downtrend atÂ theÂ time ofÂ writing.
TheÂ currency pair rallied higher after theÂ release ofÂ theÂ Markit/CIPS UK Construction PMI, which beat expectations byÂ coming inÂ atÂ 53.1 versus theÂ consensus estimate ofÂ 52.5. TheÂ PMI print released today came inÂ atÂ aÂ record high last witnessed 7 months ago. Earlier today, anÂ external member ofÂ theÂ Bank ofÂ England‘s Monetary Policy Committee Michael Sunders stated onÂ CNBC that theÂ effect of bad weather onÂ theÂ UK economy was temporary. He further stated that theÂ spare capacity inÂ theÂ British economy was almost fully utilized andÂ that average wages were steadily rising. Sounders’ comments boosted theÂ British pound.
TheÂ uncertainty regarding theÂ outcome ofÂ Brexit negotiations is also having aÂ negative impact onÂ theÂ UK economy asÂ businesses are unwilling toÂ invest until there is clarity regarding theÂ Brexit talks.
TheÂ currency pair’s short-term performance is likely toÂ be influenced byÂ theÂ release ofÂ US durable goods orders andÂ factory orders scheduled forÂ later today.
TheÂ GBP/USD currency pair was trading atÂ 1.3183 asÂ atÂ 12:53 GMT having risen from anÂ initial low ofÂ 1.3114. TheÂ GBP/JPY currency pair was trading atÂ 145.91 having rallied from aÂ low ofÂ 145.27.
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