The GBP/USD currency pair declined for the second day in a row after the release of the Markit/CIPS UK construction PMI, which did not meet expectations. The currency pair was also affected by the stronger US dollar given the massive buying interest in the greenback due to positive market sentiment.
The currency pair lost over 70 points at the height of its decline as the US dollar, which is tracked by the US Dollar Index, traded at session highs of 100.60.
The currency pair declined following the release of the Markit/CIPS UK construction PMI, which was recorded at 52.2 versus the expected 52.5. This was the second disappointing economic release from the UK as the manufacturing PMI released on Monday also did not meet expectations. The currency pair has lost close to 125 points since yesterday and is trading at levels similar to those recorded after the triggering of Article 50.
The currency pair was also affected by the stronger US dollar boosted by the lower US trade balance figures for February released by the Bureau of Economic Analysis. The US dollar was also boosted by the revised February factory orders released by the Census Bureau, which met expectations.
The currency pair’s future performance is likely to be affected by the UK services PMI and the UK composite PMI, both scheduled for release tomorrow.
The GBP/USD was trading at 1.2445 as at 18:32 GMT having opened the day’s session trading at 1.2489, a decline of 44 points. The GBP/JPY was trading at 137.78 having opened the day’s session trading at 138.23.
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