Best Exchange Rates

Sterling Slumps as Construction PMI Contracts

Categories: AUD, CAD, EUR, GBP, Markets, News, NZD, USD


GBP/USD 1 Week Chart

The Pound (GBP) tumbled against the majority of its peers yesterday following the release of the UK’s latest Construction PMI.

While only accounting for a small amount of UK economic growth, investors were concerned by the construction sector’s unexpected contraction in September.

Meanwhile, the UK will release September’s Services PMI later this morning, with Sterling likely to plummet if it also disappoints.


The Pound Euro (GBP EUR) exchange rate fell by around half a cent on Tuesday as markets shied away from Sterling following the release of the UK’s lacklustre construction PMI.

Also weighing on the pairing yesterday was a vote by MEPs urging EU officials to not begin Brexit trade talks with the UK unless a ‘major breakthrough’ is made.

Meanwhile, the single currency may advance again later this morning with the release of the Eurozone’s latest Retail Sales figures, with economists forecasting that sales will have rebounded in August after declining by 0.3% in July.

US Dollar

Sterling slumped to a new two-week low against the US Dollar (USD) yesterday, with investors fearing that the fall in business construction activity could have wider implications for the UK economy.

The ‘Greenback’ also found further gains on Tuesday following a speech by Federal Reserve Governor Jerome Powell as he cited the importance of speeding up growth, something that investors would welcome if he is granted the top job at the bank next, as some rumours suggest he will.

The US Dollar may continue to push higher this afternoon as well, with the US Services PMI expected to have risen slightly in September.

Canadian Dollar

The Pound Canadian Dollar (GBP CAD) exchange rate also fell in the wake of the UK’s latest PMI data yesterday, however the ‘Loonie’s gains were tempered somewhat by another downturn in oil prices as Brent crude fell to $55.78 a barrel, scuppering hopes that the recent rally would have helped push prices back over $60

Australian Dollar

Concerns that Brexit trade talks may be delayed pushed Sterling around a cent lower against the Australian Dollar (AUD) on Tuesday, with MEPs also suggesting that a division in the UK government were hampering efforts to make progress in talks.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate fluctuated yesterday as the UK’s lacklustre construction PMI was offset by a 2.4% fall in dairy prices at the latest global dairy auction.


Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

BER Newsletter

Subscribe for the latest exchange rates, currency news and special offers directly to your inbox.

Best Exchange Rates - We make it Easy to Compare Exchange Rates & Fees of Banks and Currency Exchange & Payment Providers

Level 2, AMP Tower, 50 Bridge Street, Sydney, NSW 2000, Australia

Disclaimer | Copyright | Privacy Statement


Best Exchange Rates is an information only service. By browsing on the website, using our comparison tools or FX provider referral service, you are asking Best Exchange Rates to provide you with information about currency exchange products & services from multiple financial institutions.

We will try to show you a range of products & services in response to your request for information. The search results do not include all providers and may not compare all features relevant to you. In giving you product information we are not making any suggestion or recommendation to you about a particular product.

If you decide to conduct foreign exchange you will deal directly with a financial institution, and not with Best Exchange Rates. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.

Best Exchange Rates may receive fees or other benefits in relation to activity on the Best Exchange Rates website. Best Exchange Rates may receive remuneration for vendor referral links. Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

Read our Full Terms of Service


This website and its contents are the copyright of BEST EXCHANGE RATES PTY LTD © 2009-17. All rights reserved.

Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following. You may print or download contents to a local hard disk for your personal and non-commercial use only. You may copy some extracts only to individual third parties for their personal use, but only if you acknowledge the website as the source of the material.

You may not, except with our express written permission, distribute or commercially exploit the content. You may not transmit it or store it on any other website or other form of electronic retrieval system.

For more details or request distribution right please contacxt us here.