The British pound weakened against the other major currencies in the early European session on Thursday, after data showed that construction sector growth slowed more-than-expected in March, amid growing jitters about May’s General election.
The Chartered Institute of Procurement & Supply/Markit construction Purchasing Managers’ Index fell to 57.8 in March from 60.1 in the previous month. It was forecast to drop to 59.8.
However, any reading above 50 indicates expansion in the sector. The latest reading signaled a strong rate of overall construction output growth, but was below the average for 2014 as a whole.
Traders will be watching the U.S. jobs report for March due Friday, which is closely watched by the Fed. While, the equity markets will be closed for the Good Friday holiday.
In the Asian session, the Pound held steady against its major rivals.
In the early European trading today, the pound fell to a 3-day low of 1.4247 against the Swiss franc and a 2-day low of 0.7303 against the euro, from early highs of 1.4336 and 0.7252, respectively. If the pound extends its downtrend, it is likely to find support around 1.33 against the franc and 0.76 against the euro.
Against the U.S. dollar and the yen, the pound edged down to 1.4814 and 177.11 from early highs of 1.4867 and 177.73, respectively. On the downside, 0.76 against the greenback,175.00 against the yen are seen as the next support levels for the pound.
Looking ahead, Canada merchandise trade data for February, U.S. weekly jobless claims for the week ended March 28 and U.S. trade balance and factory orders – both for February are slated for release in the New York session.
At 3:45 pm ET, U.S. Federal Reserve Governor Lael Brainard is expected to speak at the Ninth Biennial Federal Reserve System Community Development Research Conference in Washington DC.
The material has been provided by InstaForex Company – www.instaforex.com