British Pound (GBP) Exchange Rate Mixed against the Euro, US Dollar
The British Pound is seeing mixed trade on Thursday as gains against the US Dollar and Euro were held in check by the release of worse than forecast construction data.
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According to Markit’s construction purchasing manager’s index, construction output softened to a seven-month low level of 60.0 in May.
Economists had been expecting the figure to remain unchanged from the 60.8 level seen in April.
The softer than expected construction PMI report follow yesterdays weaker manufacturing PMI data which showed that activity in the sector fell in May from the previous months reading of 54.9 to 53.2.
Earlier in the session the Pound found support from a report which showed that UK house prices climbed to a new record high in May.
House prices climbed by 0.7% to an average level of £186,512.
“It really feels like the Pound is bulletproof. The Pound is supported by data, which consistently prints at robust levels. Any setback will be brief,” said a currency strategy at Commerzbank AG.
The US Dollar was unable to take advantage of the data as it remained under pressure from yesterday’s ISM manufacturing index.
The Euro was also under pressure from data which showed that inflation in the 18-member Eurozone declined more than expected and heightened expectations that the European Central Bank will introduce new monetary easing measures during Thursday’s ECB policy meeting.
Again that negative news was countered by an improved unemployment report.
The Eurozone’s jobless rate inched lower from 11.8% to 11.7%.
Tomorrow sees the release of the latest Eurozone GDP and US employment data.
The British Pound is currently trading against the Euro in the region of 1.2310 and trading against the US Dollar in the region of 1.6751.