GBP/USD - Construction PMI beats expectations
GBP/USD has pushed higher today but it is very much focused on the election and Brexit.
Markit commented saying: UK construction companies recorded another drop in business activity during November. The pace of decline moderated to its slowest since July. However, new work continued to fall sharply amid reports that domestic political uncertainty had led to indecision among clients.
Data points like this are still interesting but largely insignificant in the grand scheme of things. After the weak manufacturing PMI data yesterday the main piece of news that was ruling price action was the even weaker US ISM number. Then the market caught wind of more Trump-related trade comments where he said that tariffs would be increased on China if a deal was not made by the middle of this month.
Today Cable was trading at 1.2970 heading into the release of the data close to the top of the consolidation pattern high of 1.3013. A break of this level is more important as it could indicate near term strength. The only issue could be a break under false pretences, as a break on a data point would not be valued against a strong political headline.