{"id":64563,"date":"2014-12-02T07:16:17","date_gmt":"2014-12-02T12:16:17","guid":{"rendered":"http:\/\/countingpips.com\/?p=64563"},"modified":"2014-12-02T07:51:03","modified_gmt":"2014-12-02T12:51:03","slug":"sterling-edges-lower-following-soft-construction-pmi","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/12\/sterling-edges-lower-following-soft-construction-pmi\/","title":{"rendered":"Sterling Edges Lower Following Soft Construction PMI"},"content":{"rendered":"
December 2, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

Sterling edged lower back to support levels near the 10-day moving average following a soft construction PMI out of the U.K, which fell to 59.4 from October\u2019s 61.5 readings, and though still signalling robust activity, more deceleration looks likely over the coming months, as being portended by the dive in mortgage approvals. Cable dipped to an Intraday low of 1.5707, though follow-through has been limited.<\/p>\n

The U.K. Markit construction purchasing managers index came in \u00a0weaker than expected in the November reading, dropping to a new cycle low of 59.4 after October\u2019s 61.5 reading<\/span>. This is a fairly pronounced drop -off from September\u2019s 64.2 cycle high. The recent dive in mortgage approvals has been portending a decline in activity in the housing sector, which in turn will have broader economic implications as the property sector\u2019s multiplier effects weakens.<\/p>\n

The BoE\u2019s final Monetary Policy Committee meeting of 2014 is scheduled for this week. The BoE\u2019s policy announcement is widely expected to leave the repo rate at 0.5% and QE total at GBP 375 billion pounds. No statement is likely, as per normal following unchanged decisions, so we\u2019ll have to wait for the minutes to be published two weeks hence, on Dec-17, for insight. Last month\u2019s minutes said there was a \u201cmaterial spread of views on the balance of risks to the outlook\u201d in the Committee, which is also expected this time around.\u00a0 The indecision will likely keep the pound buoyed against most major currencies.<\/p>\n

The GBP\/USD is hovering around the 10-day moving average near 1.57.\u00a0 Momentum has turned positive with the MACD (moving average convergence divergence printing in<\/span> the black<\/span> with an upward sloping trajectory.\u00a0 The RSI (relative strengh<\/span> index) is printing a reading of 42, which is in the middle of the neutral zone and reflects consolidation.<\/p>\n

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Article by ForexTime Sterling edged lower back to support levels near the 10-day moving average following a soft construction PMI out of the U.K, which fell to 59.4 from October\u2019s 61.5 readings, and though still signalling robust activity, more deceleration looks likely over the coming months, as being portended by the dive in mortgage approvals. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-64563","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/64563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=64563"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/64563\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=64563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=64563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=64563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}