Forex News – Sterling stable after UK PMI

Important: This page is part of archived content and may be outdated.

Sterling reacted very little against the dollar and yen after the purchasing managers’ index for construction was released for the month of May showing little surprise in the results.

According to a survey by Markit economics PMI in the UK fell in May to 54.4 from 55.8 in April. The decline was expected and close to the forecast of 54.2  The index gauges industrial sentiment by surveying major players in the industry and a reading above 50 indicates an expanding market..

Before falling in April PMI construction reached a 21-month high of 56.7 in March.

The data is closely watched by the Bank of England to make its policy decisions aimed at stimulating economic growth and managing inflationary pressures.

BoE Governor Mervyn King recently said that growth prospects in the UK are now lower than they were three months ago, due to the current political instability in the euro zone.

GBPUSD was little changed immediately after the data was released at 08:30 GMT trading at around 1.5473.