FX Traders – GBP/USD pair maintains gains on PMI U.K. Construction
November 4, 2013 – The Sterling maintained gains versus the Dollar on Monday after reported data showed that the activity in the U.K. construction sector had expanded at the quickest rate in more than six years in October.
GBP/USD hit 1.5979 during the European trading session with the pair’s high consolidation at 1.5968, gaining 0.27%.
Cable was likely to find support at 1.5903, the session low and a 2 – week low and resistance at 1.6046 for Friday’s high.
However, the Sterling Pound reversed from a two-week low against the dollar after U.K.’s construction purchasing managers index had raised to 59.5 last month, which was the highest level since September 2007.
The report had stated the housing sector remained the strongest performing area of the entire sector, while the whole commercial sector registered the fastest rate of growth since last year April. However, the employment levels rose at the steepest rate in 6 years. The Forex traders will be in high spirits.
The dollar continues to be an underpinning commodity after the unexpected U.S. manufacturing data on Friday added to many expectations that the Federal Reserve could start its tapering stimulus program in March, 2014.
The Federal Reserve bank of Dallas Texas, president Richard Fischer stated that on Monday the fiscal standoff in Washington countered the primary role of the Fed’s easing of monetary policies in the economic recovery.
The Sterling was slightly higher versus the Euro, with EUR/GBP falling 0.17% to 0.8456.