Pound Advances As U.K. Construction PMI Hits 7-month High
October 02 2015 - 1:13AM
RTTF2
The British pound strengthened against the other major
currencies in the early European session on Friday, after data
showed that the British construction activity growth improved
sharply in September as output grew at the fastest pace in seven
months.
Data from Markit Economics and the Chartered Institute of
Procurement & Supply (CIPS) showed that the seasonally adjusted
Marikt/CIPS U.K. Construction Purchasing Managers' Index climbed to
59.9 from 57.3 in August. Economists had expected only a modest
improvement with an increase to 57.5.
Meanwhile, the European shares rose, as investors await the U.S.
employment data due later in the day to get more clues about the
possible timing of the first Fed rate hike.
The U.K.'s FTSE 100 index is currently up 1.09 percent or 66.35
points at 6,138, France's CAC 40 index is up 1.25 percent or 55.25
points at 4,481 and Germany's DAX is up 1.13 percent or 107.21
points at 9,616.
The report is expected to show an increase of about 203,000 jobs
in September following the addition of 173,000 jobs in August. The
jobs data could have a significant impact on expectations regarding
whether the Federal Reserve will raise interest rates later this
month.
In the Asian session today, the pound held steady against its
major rivals.
In the early European trading, the pound rose to a 2-day high of
182.22 against the yen, from an early low of 181.33. If the pound
extends its uptrend, it is likely to find resistance around the
185.00 area.
Data from the Ministry of Internal Affairs and Communications
showed that the unemployment rate in Japan came in at a seasonally
adjusted 3.4 percent in August. That was above forecasts for 3.3
percent, which would have been unchanged from the July reading.
Against the U.S. dollar, the Swiss franc and the euro, the pound
edged up to 1.5173, 1.4825 and 0.7358 from early lows of 1.5127,
1.4776 and 0.7397, respectively. The pound may test resistance
around 1.54 against the greenback, 1.50 against the franc and 0.72
against the euro.
Looking ahead, U.S. jobs data for September and factory orders
for August are slated for release in the New York session.
At 8:45 am ET, Federal Reserve Bank of Philadelphia President
Patrick Harker is scheduled to give opening remarks before the "New
Perspectives on Consumer Behavior in Credit and Payments Markets"
conference hosted by the Federal Reserve Bank of Philadelphia.
Half-an-hour later, Federal Reserve Bank of St. Louis President
James Bullard is expected to speak on the economy and monetary
policy before a Shadow Open Market Committee meeting hosted by the
Manhattan Institute for Policy Research, in New York.
At 1:30 pm ET, Federal Reserve Bank of Boston President Eric
Rosengren will give welcome and opening remarks before the "Macro
Prudential Monetary Policy" conference hosted by the Federal
Reserve Bank of Boston. Additionally, Federal Reserve Governor
Stanley Fischer is expected to speak at the conference.
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