Pound Higher As UK Construction PMI Hits 7-Month High
July 03 2018 - 02:32AM
RTTF2
The pound was higher against its major counterparts in the
European session on Tuesday, after a data showed that the UK
construction output grew at the fastest pace in seven months in
June.
Survey data from IHS Markit and Chartered Institute of
Procurement & Supply showed that the construction Purchasing
Managers' Index rose to 53.1 in June from 52.5 in May. The latest
reading pointed to the sharpest rise in construction output since
November 2017.
The survey showed that residential work remained the best
performing area of activity. Commercial building also contributed
to the stronger overall rise in construction output.
Sentiment was buoyant as German Chancellor Angela Merkel reached
a deal with her interior minister over the migration policy,
helping avert a political crisis in the country.
The currency showed mixed trading against its major counterparts
in the Asian session. While it rose against the yen and the franc,
it held steady against the euro and the greenback.
The pound rose to 146.38 against the yen, from a low of 145.28
hit at 9:45 pm ET. On the upside, 148.00 is possibly seen as the
next resistance level for the pound.
Data from the Bank of Japan showed that Japan monetary base
advanced 7.4 percent on year in June, coming in at 493.363 trillion
yen.
That follows the 8.1 percent gain in May.
Having fallen to 1.3115 versus the greenback at 9:30 pm ET, the
pound reversed direction and climbed to 1.3196. The next likely
resistance for the pound is seen around the 1.33 level.
The pound firmed to a 4-day high of 1.3106 against the franc,
following a 4-day decline to 1.3033 at 5:00 pm ET. The pound is
seen finding resistance around the 1.33 region.
The pound edged up to 0.8833 against the euro, reversing from a
low of 0.8862 hit at 9:30 pm ET. The pound is likely to find
resistance around the 0.87 level.
Data from Eurostat showed that Eurozone retail sales remained
unchanged in May as the increase in food sales was offset by a
decline in non-food products turnover.
Sales were expected to gain 0.1 percent, reversing a 0.1 percent
fall logged in April.
Looking ahead, U.S. factory orders and durable goods orders for
May will be out in the New York session.
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