Pound Drops As U.K Construction Activity Shrinks
(RTTNews) - The pound declined against its major counterparts in the European session on Thursday, after a survey showed that Britain's construction industry experienced the biggest slide in activity in more than three years last month.
The S&P Global/CIPS construction Purchasing Managers' Index fell to 45.0 from August's 50.8, its lowest since May 2020.
All three main segments of construction work posted a reduction in business activity, led by a steep and accelerated fall in house building.
The Bank of England's Decision Maker Panel survey showed that UK businesses expect their output price inflation to decline over the next year.
However, year-ahead wage growth was forecast to remain high on a three-month moving average basis, the survey added.
The pound fell to 1.1103 against the franc and 1.2115 against the greenback, from its early highs of 1.1138 and 1.2163, respectively. The next likely support for the pound is seen around 1.10 against the franc and 1.19 against the greenback.
The pound eased to 180.44 against the yen, after rising to 180.94 in early deals. If the pound continues its fall, 178.00 is possibly seen as its next support level.
The pound edged down to 0.8673 against the euro, from an early 1-week high of 0.8638. Next key support for the pound is likely seen around the 0.88 region.
Looking ahead, U.S. and Canadian trade data for August, U.S. weekly jobless claims data and Canada Ivey PMI data for September are slated for release in the New York session.
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