Investing.com – The pound erased early gains against the U.S. dollar on Tuesday, falling to hit a 2-day low after data showed that the recovery of the UK construction sector peaked in the summer.
GBP/USD hit 1.5963 during European afternoon trade, the pair’s lowest since last Friday; the pair subsequently consolidated at 1.5987, shedding 0.30%.
Cable was likely to find support at 1.5876, last Friday’s low and resistance at 1.6106, the high of October 15.
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 pound was also down against the euro, with EUR/GBP soaring 0.98% to hit 0.8749.
Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing.
GBP/USD hit 1.5963 during European afternoon trade, the pair’s lowest since last Friday; the pair subsequently consolidated at 1.5987, shedding 0.30%.
Cable was likely to find support at 1.5876, last Friday’s low and resistance at 1.6106, the high of October 15.
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 pound was also down against the euro, with EUR/GBP soaring 0.98% to hit 0.8749.
Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing.