The pound trended on the bulls’ Twitter feed like #justinbeiber as soon as positive data was released from the U.K. GBP/USD tapped an intraday high of 1.6178 before ending the day with a 14-pip win at 1.6126.
Yesterday, the Construction PMI for March wowed traders when it printed near its 8-month high at 56.4. Analysts had anticipated activity in the sector to have lost a lot of momentum during the month after coming in at 56.5 in February. The forecast was only at 54.7.
I wonder if the Services PMI will also sweep the market off its feet later at 8:30 am GMT. A very modest slowdown in service sector activity is expected with the forecast for March down at 52.5 following February’s reading of 52.6.
Traders will have their eyes peeled for the report fosho, and so should you! We’ve seen improvements in the British economy here and there, but most economic gurus remain skeptical of its recovery. And so, a better-than-expected figure may just help ease the pessimism and consequently boost the pound on the charts!