The British pound hit its lowest level versus the US dollar in nearly three weeks Wednesday following investors still speculate the Bank of England won’t increase interest rates until 2016.
The Markit/CIPS construction Purchasing Managers’ Index climbed to 57.3 in August from 57.1 in July, attributing it to stronger housebuilding growth.
Sterling closed at 73.50 pence per euro. Against the US dollar, the pound was at $1.5270.
The action in the currency is slightly surprising granted the hawkish remarks of BOE Governor Mark Carney in the Jackson Hole summit, said Marshall Gittler, Head of Global FX Strategy at IronFX.
On Sunday, Carney said a slowdown in the Chinese economy could push down further on inflation but it won’t change the BOE’s stance on the timing and manner of raising rates.
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