Loading...

Sterling Slumps as Construction PMI Contracts

#News #AUD #CAD #EUR #GBP #NZD #USD
Email share     Facebook     LinkedIn    Twitter

Sterling


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.

Euro

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.

 

 

Further Reading

 

Coronavirus spread fears linger – USD strong – AUD at 11 year lows

This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.

Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

New Year Optimism Retreats on US/Iran Tension

The threat of a proxy war between the US and Iran in Iraq has pared back some of the recent gains of “risk-on” currencies.

Last update: 8 Jan, 2020

  

Posted to: News

 
 
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.
 

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!