Investing.com - The pound rose to one-week highs against the dollar on Tuesday after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years in August.
GBP/USD hit 1.5602 during European morning trade, the highest since August 26; the pair subsequently consolidated at 1.5588, gaining 0.29%.
Cable was likely to find support at 1.5504, Monday’s low and resistance at 1.5635, the high of August 28.
Markit and the Chartered Institute of Purchasing & Supply said the U.K. construction purchasing managers' index rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
The latest reading indicated a sharp rise in total business activity and the fastest pace of output expansion in the construction sector since September 2007.
“With overall output levels now rising at the fastest pace for around six years, it seems highly likely that the construction sector will provide another positive contribution to U.K. GDP in the third quarter of 2013,” senior Markit economist Tim Moore said.
The data came one day after a report showed that manufacturing activity in the U.K. jumped to a 30-month high in August, fuelling hopes that the Bank of England may raise interest rates sooner than it has indicated.
Last month, the BoE pledged to keep rates on hold at record lows until the U.K. unemployment rate falls below 7%, something the bank sees as unlikely to happen for another three years.
Sterling rose to three-and-a-half month highs against the euro, with EUR/GBP down 0.42% to 0.8451.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.
GBP/USD hit 1.5602 during European morning trade, the highest since August 26; the pair subsequently consolidated at 1.5588, gaining 0.29%.
Cable was likely to find support at 1.5504, Monday’s low and resistance at 1.5635, the high of August 28.
Markit and the Chartered Institute of Purchasing & Supply said the U.K. construction purchasing managers' index rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
The latest reading indicated a sharp rise in total business activity and the fastest pace of output expansion in the construction sector since September 2007.
“With overall output levels now rising at the fastest pace for around six years, it seems highly likely that the construction sector will provide another positive contribution to U.K. GDP in the third quarter of 2013,” senior Markit economist Tim Moore said.
The data came one day after a report showed that manufacturing activity in the U.K. jumped to a 30-month high in August, fuelling hopes that the Bank of England may raise interest rates sooner than it has indicated.
Last month, the BoE pledged to keep rates on hold at record lows until the U.K. unemployment rate falls below 7%, something the bank sees as unlikely to happen for another three years.
Sterling rose to three-and-a-half month highs against the euro, with EUR/GBP down 0.42% to 0.8451.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.