As reported by experts of the Forex market, the PMI index for the UK construction sector from Markit/Chartered Institute of Purchasing and Supply fell to 62.5 last month from 62.6 in February. Economists had expected the index to rise to 63.0 in March. Reports improves basic demand and more favorable business conditions helped business optimism reach its highest level since January 2007, while the company hired staff at the fastest pace in four months. Housing, according to analysts Forex showed the highest rate of expansion, after slowing in February associated with weather conditions.
Markit senior economist David Noble noted that as the rain gave way to the sun, the housing market regained the place of the protagonist. Commercial activity continues to grow strongly, benefiting from a positive business environment. Earlier Wednesday, the British mortgage lender Nationwide said that house price growth slowed for the third month in a row in March, despite the largest annual increase in nearly four years, says the experts as Forex.
GBP/USD weakened on risk aversion.
As reported by analysts of Forex Broker RVDMarkets, Sterling accelerated downward movement by sending pound against the U.S. dollar at 1.6630 zone/25. The increased risk aversion puts pressure on the cross, which is re-testing 1.6630/25 area, having lost earlier points scored. With regard to statistics, in February prices, according to Nationwide, rose by 0.4% m/m and 9.5% y/y, confounding analysts' expectations. In March PMI index in the construction sector in Britain was also below expectations. Karen Jones, a senior technical analyst at Commerzbank: “The pair formed pattern" outside day "that does not clarify the situation with regard to prospects for the future direction of price movement".
Today, April 2, 2014, the pair is trading with an increase of 0.02% in the level of 1.6634, analysts say the company's Forex RVD Markets Limited. Immediate resistance lies at 1.6684 (March 31 high), 1.6719 (March 13 high) and 1.6745 (March 10 high). Breakout of 1.6620 (peak daytime clouds) will open the way to 1.6613 support (at least March 31) and 1.6599 (low of March 28).
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.