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Sterling Strong Even as UK Construction Declines

February 4, 2013 at 12:26 by Vladimir Vyun

20-pound banknotesThe Great Britain pound remained strong today even after a report showed that Britain’s construction stayed in decline last month. The sterling advanced against the US dollar as likely the Friday’s huge drop was overdone, while rally of pound against the yen can be explained by the weakness of the Japanese currency.

The Markit/CIPS UK Construction Purchasing Managers’ Index remained at 48.7 in January, unchanged at from the December’s six-month low. The reading below 50.0 indicates contraction of the sector. Today’s negative data added to the recent string of poor macroeconomic reports. Yet the sterling remained unfazed and rose even amid unfavorable fundamentals.

GBP/USD rose from 1.5689 to 1.5710 and GBP/JPY advanced from 145.55 to 145.95 as of 12:26 GMT today.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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