Pound Weakens as UK Construction Stagnates

The Great Britain pound dropped today after the report showed that the nation’s construction sector stalled last month, adding incentive for the UK central bank to increase stimulus.

The Markit/CIPS Construction Purchasing Managers’ Index was at 50.1, just barely above the 50.0 no-change. The index declined from the August value of 52.6 and was below the median forecast of 51.7. The index reached the lowest level since December, when it below 50.0. Analysts predict that tomorrow’s reports will show a decline of the services PMI and increase of the current account deficit.

GBP/USD fell from 1.5430 to 1.5377 today as of 10:14 GMT, following the advance to 1.5465. GBP/JPY declined from 118.18 to 117.85 after it rose to the intraday high of 118.62.

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