Investing.com – The euro was up against the pound on Tuesday, surging to a 3-day high after data showed that the recovery of the UK construction sector peaked in the summer.
EUR/GBP hit 0.8768 during European afternoon trade, the pair’s highest since October 28; the pair subsequently consolidated at 0.8755, jumping 1.07%.
The pair was likely to find support at 0.8651, Monday’s low and short-term resistance at 0.8771, the high of October 28.
Earlier in the day, data showed that the Markit/Chartered Institute of Purchasing & Supply construction Purchasing Managers' Index fell more than expected in October, dropping to 51.6 after rising to 53.8 in September. Analysts had expected the PMI to fall to 53.1 in October. Octobers drop came after eight successive months of growth.
Commenting on the report, Sarah Ledger, economist at Markit said, "Looking ahead therefore, it may be reasonable to assume that construction will have less of a positive impact on GDP compared to Q3".
Last week U.K. GDP data revealed the economy grew at twice the rate expected in the third quarter with growth in the construction industry playing an important role in underpinning the rapid rate of growth.
The euro was also up against the U.S. dollar, with EUR/USD leaping 1.00% to hit 1.4033.
Also Tuesday, the euro zone’s October manufacturing PMI was revised up to 54.6 from 53.7 in September. It had originally been estimated at 54.1.
EUR/GBP hit 0.8768 during European afternoon trade, the pair’s highest since October 28; the pair subsequently consolidated at 0.8755, jumping 1.07%.
The pair was likely to find support at 0.8651, Monday’s low and short-term resistance at 0.8771, the high of October 28.
Earlier in the day, data showed that the Markit/Chartered Institute of Purchasing & Supply construction Purchasing Managers' Index fell more than expected in October, dropping to 51.6 after rising to 53.8 in September. Analysts had expected the PMI to fall to 53.1 in October. Octobers drop came after eight successive months of growth.
Commenting on the report, Sarah Ledger, economist at Markit said, "Looking ahead therefore, it may be reasonable to assume that construction will have less of a positive impact on GDP compared to Q3".
Last week U.K. GDP data revealed the economy grew at twice the rate expected in the third quarter with growth in the construction industry playing an important role in underpinning the rapid rate of growth.
The euro was also up against the U.S. dollar, with EUR/USD leaping 1.00% to hit 1.4033.
Also Tuesday, the euro zone’s October manufacturing PMI was revised up to 54.6 from 53.7 in September. It had originally been estimated at 54.1.