The British pound weakened against the other major currencies in the early European session on Wednesday, after data showed that British construction activity expanded at the weakest pace in ten months in February, defying economists’ expectations for a modest improvement.
Data from Markit Economics and the Chartered Institute of Procurement & Supply showed that the Markit/CIPS UK Construction Purchasing Managers’ Index fell to 54.2 in February from 55.0 in the previous month.
Meanwhile, it was expected to rise to 55.5.
In the Asian trading today, the pound held steady against its major rivals.
In the early European session, the pound fell to 159.25 against the yen, from an early 8-day high of 159.91. If the pound extends its uptrend, it is likely to find support around the 154.00 area.
Against the U.S. dollar, the euro and the Swiss franc, the pound edged down to 1.3922, 0.7803 and 1.3899 from early highs of 1.3987, 0.7762 and 1.3969, respectively. The pound may test support near 1.38 against the greenback, 0.79 against the euro and 1.37 against the franc.
Looking ahead, U.S. ADP private sector jobs data for February is set to be announced in the New York session.
Bank of England Deputy Governor Jon Cunliffe will testify about the economics of the United Kingdom’s housing market before the Lords Committee in London at 9:00 am ET.
At 10:00 am ET, Federal Reserve Bank of San Francisco President John Williams is expected to speak on the economic outlook before the Bishop Ranch Forum in California.
Subsequently, European Central Bank board member Benoit Coeure will speak to the European Parliament in Brussels.
At 2:00 pm ET, Federal Reserve will issue the Beige Book of economic condition in Washington D.C.
The material has been provided by InstaForex Company – www.instaforex.com