NEWS : GBP/USD remains depressed, just above 1.2600 handle post-UK PMI
GBP/USD remains depressed, just above 1.2600 handle post-UK PMI
- UK construction PMI records the steepest decline in over 10-years.
- This coupled with no-deal Brexit fears further weighed on the GBP.
- A subdued USD demand helped limit downside, at least for now.
The GBP/USD pair held on to its weaker tone and refreshed session lows, around the 1.2615-10 region in reaction to awful UK construction PMI.
Data released this Tuesday showed a sharp loss of momentum for the UK construction sector, with the business activity falling at the fastest pace since April 2009 amid heightened political and economic uncertainty.
In fact, the final UK construction PMI dropped to 43.1 in June – down sharply from 48.6 in May and well below the 50.0 mark for the fourth month in the previous five, and added to Monday’s weaker UK manufacturing PMI.
The incoming data have been signalling a slowdown in the British economy, which coupled with persistent fears of a no-deal Brexit continued exerting some pressure on the major for the second consecutive session.
The downside, however, seemed limited, at least for the time being, with the pair managing to hold its neck above the 1.2600 handle amid a subdued US Dollar demand, weighed down by sliding US Treasury bond yields.
