Promising construction data pushes pound up against dollar
Currencies Direct November 4th 2013 - < 1 minute read
Sterling has recovered from two-week lows against the dollar
today (November 4th) as encouraging construction data boosted
the exchange
rate.
The UK construction purchasing managers’ index (PMI) increased
to 59.4 in October, exceeding expectations that there would be no
change in the reading. Anything above 50 indicates expansion.
Marking the strongest performance since September 2007, the
figures provided support for the pound, which rose to 1.5966
against the greenback this morning. Sterling then consolidated at
1.5960, representing a 0.21 per cent rise.
According to the PMI figures, it was the housing sector that
performed best, although the commercial sector posted the quickest
growth in 18 months. On top of this, employment shot up at the
fastest rate for six years.
Meanwhile, the dollar enjoyed some support after manufacturing
data was more positive than expected, fuelling hopes that although
the Federal Reserve decided not to wind back asset purchases last
week, it could do so in the near future.
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Currencies Direct