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4 Jun 2013
Flash: UK Construction PMI offered upside surprise – Brown Brothers Harriam
FXstreet.com (London) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that the UK construction PMI offered an upside surprise, following yesterday's better than expected manufacturing PMI.
“We are struck by the rebound that has been recorded since the 46.8 reading in February (to 50.8 in May). On top of that the BRC sales figures (1.8% in May vs. consensus of 1.3%) suggest that perhaps the CBI distributive trades survey was too pessimistic. Sterling is trading with a heavier bias, straddling the $1.53 level through the London morning”.
He went onto say that the 5-day moving average is crossing above the 20-day average for the first time since mid-May, a constructive technical development and provided the $.5240 area holds, sterling can retest the $1.5400 area.
“We are struck by the rebound that has been recorded since the 46.8 reading in February (to 50.8 in May). On top of that the BRC sales figures (1.8% in May vs. consensus of 1.3%) suggest that perhaps the CBI distributive trades survey was too pessimistic. Sterling is trading with a heavier bias, straddling the $1.53 level through the London morning”.
He went onto say that the 5-day moving average is crossing above the 20-day average for the first time since mid-May, a constructive technical development and provided the $.5240 area holds, sterling can retest the $1.5400 area.