British Pound restores its position. Overview on March 3, 2016
03.03.2016
On Thursday, Pair GBP/USD is trading with rising and moving away from the weeks-long "bottom".
British Pound was very dynamic in the day, but the short-term trend remains positive for "Englishman". On Thursday morning, the pair GBP / USD traded with a big increase, the current price in the tool is 1.0482. Pair minimum has been updated on February 29 - it was 1.3835.
Days before interesting statistics on UK economy was reported. In February, according to the calculations of the CIPS and Markit the rate of growth of business activity in the construction sector had slowed down and was eastimated as 54.2 points versus 55.0 points a month earlier. The forecast assumed to increase to 55.5 points. This is the worst result of the indicator over the past 10 months.
The parts of the report shows that this winter the housing construction segment becomes slower and slower and demonstrates the weakest pace since the beginning of 2013. Construction of commercial real estate also is weakening, but this marked only with the annual minimums. At the same time, the civil construction segment is returning to life and displays the data on a five-month peak level. However, all of this is not enough to stabilize the indicator as a whole.
Most likely, the key reason of slowing business activity in the UK construction sector is too nebulous and vague economic prospects. It employs the "long" money, for which the most important is the long-term stability. Hence, the outflow of capital and a reduction of the pace of life processes.
British pound will recover very slowly and up to the moment when the US currency will not receive a new stimulus to the strengthening.
British Pound was very dynamic in the day, but the short-term trend remains positive for "Englishman". On Thursday morning, the pair GBP / USD traded with a big increase, the current price in the tool is 1.0482. Pair minimum has been updated on February 29 - it was 1.3835.
Days before interesting statistics on UK economy was reported. In February, according to the calculations of the CIPS and Markit the rate of growth of business activity in the construction sector had slowed down and was eastimated as 54.2 points versus 55.0 points a month earlier. The forecast assumed to increase to 55.5 points. This is the worst result of the indicator over the past 10 months.
The parts of the report shows that this winter the housing construction segment becomes slower and slower and demonstrates the weakest pace since the beginning of 2013. Construction of commercial real estate also is weakening, but this marked only with the annual minimums. At the same time, the civil construction segment is returning to life and displays the data on a five-month peak level. However, all of this is not enough to stabilize the indicator as a whole.
Most likely, the key reason of slowing business activity in the UK construction sector is too nebulous and vague economic prospects. It employs the "long" money, for which the most important is the long-term stability. Hence, the outflow of capital and a reduction of the pace of life processes.
British pound will recover very slowly and up to the moment when the US currency will not receive a new stimulus to the strengthening.
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.