The Pound was given a much needed boost this morning after the release of better than expected construction PMI data signalling a solid growth in the building sector.
The seasonally adjusted Markit/ CIPS Construction Purchasing Managers’ Index rose in May to 54.0 from last month’s 53.3. Economists merely forecasted an increase to 53.7
A breakdown of the data showed an increase in both new business and as well as the release of previous projects that were put on hold. Furthermore, employment in the industry was reported to have increased, although only modestly.
Meanwhile, business prospects are expected to improve, with the degree of positive sentiment improving to a one-year high.
Upon release of the news at 08:30 GMT, GBPUSD jumped 23 pips from 1.6321 to 1.6344 within two minutes, then continued to rise to 1.6376 by 09:00GMT.