The Pound slowed down its growth. Overview for 05.04.2018
GBPUSD had been slowly growing since the beginning of the week, but on Thursday buyers became less active.
On Thursday morning, the British Pound is retreating a little bit against the USD. The current quote for the instrument is 1.4065.
The statistics published yesterday showed that the Construction PMI in the United Kingdom plummeted up to 47.0 points in March, which is much worse than the February and expected readings of 51.4 points and 50.9 points respectively. Before that, the indicator had been rising for five consecutive months, that’s why the current decline did surprise everyone. What concerns investors is that the decline wasn’t just a couple of tenths, but more than 4 points, because such difference may really indicate the trend change.
However, one should take into account that several macroeconomic indicator in the United Kingdom in March were affected by weather conditions. In this light, it will be quite interesting to see April numbers, because weather conditions might not be a significant factor.
Apart from this, the BRC Shop Price Index decreased up to -1.0% y/y in April after being -0.8% y/y the month before.
As a result, such weak statistics put a lot of pressure on the Pound and made it fall.
RoboMarkets Analytical Department
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