The British pound weakened against the other major currencies in the European session on Monday, after data showed that the British construction activity logged the weakest overall performance for exactly seven years in June.
Data from Markit Economics showed that the construction Purchasing Managers’ Index fell to a 7-year low of 46.0 in June from 51.2 in May. Economists had expected the index to drop to 50.5.
Output declined at the fastest pace since 2009. New orders intakes declined at the steepest pace since December 2012.
The results of an Opinium Research survey revealed that a majority of Brits think the U.K. should hold a general election before official Brexit negotiations. Sixty percent of Brits want an election before negotiations begin, with 55 percent saying the next Prime Minister needs to be pro-Brexit to get the best deal from the European Union.
Meanwhile, the European shares fell, as trading activity remained sluggish due to the Independence Day holiday in the U.S.
In the Asian trading today, the pound showed mixed trading against its major rivals. While the pound fell against the U.S. dollar and the Swiss franc, it held steady against the euro and the yen.
In the European trading, the pound fell to 0.8384 against the euro and 135.98 against the yen, from early highs of 0.8354 and 136.69, respectively. If the pound extends its downtrend, it is likely to find support around 0.85 against the euro and 131.00 against the yen.
Against the U.S. dollar and the Swiss franc, the pound edged down to 1.3244 and 1.2918 from early highs of 1.3307 and 1.2959, respectively. The pound had dropped to a 4-day low of 1.3242 against the U.S. dollar and a 1-week low of 1.2875 against the franc in the earlier session. The pound is likely to find support around 1.30 against the greenback and 1.27 against the franc.
Looking ahead, Canada RBC manufacturing PMI for June is slated to be released in the New York session.
U.S. banks will be closed in observance of Independence Day holiday.
The material has been provided by InstaForex Company – www.instaforex.com