The British pound weakened against the other major currencies in the early European session on Wednesday, after data showed that U.K. construction activity expanded at the slowest pace in seven months in November.
Data from the Markit/Chartered Institute of Procurement & Supply showed that U.K. Purchasing Managers’ Index for construction fell to 55.3 in November from 58.8 in October. It was forecast to fall to 58.6.
Traders await the European Central Bank’s monetary policy decision on Thursday, which is likely to provide further stimulus.
In the Asian session today, the pound held steady against its major rivals.
In the early European trading, the pound fell to a 1-week low of 0.7068 against the euro, a 6-day low of 1.5411 against the Swiss franc and a 2-day low of 1.5032 against the U.S. dollar, from early highs of 0.7040, 1.5485 and 1.5082, respectively. If the pound extends its downtrend, it is likely to find support around 0.71 against the euro, 1.52 against the franc and 1.49 against the greenback.
Against the yen, the pound dropped to 185.13 from an early high of 185.64. The pound is likely to find support around the 184.00 area.
Data from the Bank of Japan showed that the monetary base in Japan spiked 32.5 percent on year in November, standing at 343.721 trillion yen. That follows the 32.5 percent spike in October.
Looking ahead, U.S. private sector jobs data for November and U.S. crude oil inventories data are slated for release in the New York session.
At 8:10 am ET, Federal Reserve Bank of Atlanta President Dennis Lockhart is expected to speak about the U.S. economy at the Broward Workshop, in Fort Lauderdale.
Twenty minutes later, Federal Reserve Chair Janet Yellen will deliver brief remarks at the National College Fed Challenge Finals, in Washington DC. Subsequently, Yellen will also speak about the U.S. economic outlook at the Economic Club of Washington DC at 12:25 pm ET.
At 9:00 am ET, Federal Reserve Board Governor Daniel Tarullo participates in the Economic Growth and Regulatory Paperwork Reduction Act Outreach Meeting hosted by the Federal Deposit Insurance Corp, in Arlington.
The Bank of Canada’s interest rate decision is due to be released at 10:00 am ET. The economists expect the bank to hold rates at 0.50 percent.
At 2:00 pm ET, Federal Reserve issues the Beige Book of economic condition report, in Washington D.C.
At 3:40 pm ET, Federal Reserve Bank of San Francisco President John Williams will speak about the economic outlook before a meeting of Portland community leaders, in Portland.
The material has been provided by InstaForex Company – www.instaforex.com