Pound Weakens on Slower Construction Growth

The Great pound dropped against the euro, erasing the two-day gains, after the report showed the slower construction growth, reinforcing the concerns for Britain’s economy and the outlook for the quantitative easing by the Bank of England.

The Construction Purchasing Managers’ Index dropped from 53.8 in September to 51.6 in October. The much smaller decline to 53.1 was expected. The report somewhat muted the impact of the positive economic data last week on the outlook for the UK economy.

The Bank of England should set the interest rates and release its statement on November 4th. The Bank expected to follow the US Federal Reserve in adding unprecedented stimulus, debasing the nation’s currency.

GBP/USD traded at 1.6034 as of 3:09 GMT after closing on the previous session at 1.6033. EUR/GBP traded near 0.8740 after opening at the previous session at 0.8661 and closing at 0.8750.

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