Sterling Slips To Three-week Lows Vs Dollar After Construction PMI Drops Below 50
Oct, 03rd 13:35
Sterling plunged to a nearly-three-week low versus the dollar on Tuesday after data showed activity in the UK construction sector in September contracted for the first time in 13 months.
The British pound extended its downward rally against its American counterpart to a third consecutive trading day, sending the pair GBPUSD down more than 0.2 percent to trade at $1.3249 – the weakest level since September 14th.
Financial data firm Markit on Tuesday reported that its construction purchasing managers’ index fell below the 50-point threshold that separates expansion from contraction for the first time since August 2016. Particularly, the index dropped to 48.1 in September from 51.1 in August, missing forecast calling for a reading of 51.1.
Moreover, Sterling has been under pressure after UK Trade Secretary Liam Fox warned that the UK will have no choice but to walk away if the country fails to make a trade deal with the European Union by March.
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