The Sterling gained again on Tuesday as traders continued to back the GBP even as the Construction PMI left a sour taste. The Construction PMI turned in a reading of 54.1 compared to the estimate of 58.2. Today the Halifax HPI and the Services PMI reading will be released. The Service PMI is anticipated to be 54.5. Economic data from the U.K. the past couple of weeks has provided mostly a positive influence for GBP sentiment, but yesterday’s outcome may mark a return to the rather mixed circumstances that have been prevalent most of the year. The U.K. economy like its counterparts remains in tenuous waters and has a host of challenges ahead including austerity and growth. Tomorrow the Bank of England’s MPC will announce their monetary policy decision, but this is not expected to cause any earth shattering experiences. The Sterling has performed remarkably well the past month and its current short term trend may continue to foster opportunity. The one question that traders may begin to ask however, is how much upside can possibly be left and a test of the GBP ranges may be in store.
Written by bforex.com