The Pound Sterling to Swiss Franc (GBP/INR) exchange rate was little changed on Tuesday despite the release of a stronger than forecast UK Construction Purchasing Managers Index (PMI).
The Pound Sterling to Swiss Franc (GBP/INR) was trading in the region of 1.47
According to a report compiled by market research firm Markit and the Chartered Institute of Purchasing & Supply, construction sector activity in the UK rose strongly to hit a four-month high in February.
The Construction sector PMI rose a whole point to a reading of 60.1, a figure that beat economist expectations for a decline to 59.0. The rise means that activity in the sector is at its highest level in four months. The positive report adds to Monday’s stronger than forecast manufacturing PMI which showed that activity in that sector climbed to a seven-month high last month.
‘The latest survey highlights renewed vitality within the UK construction sector, as output growth picked up further from the soft patch seen at the end of 2014. However, some construction companies noted that the uncertain general election outcome could prove a temporary bump in the road for new work,’ said Tim Moore, senior economist at Markit.
Swiss GDP Data Has Little Impact on Franc
The Swiss Franc meanwhile softened against the Pound despite the release of positive Gross Domestic Product (GDP) data.
According to the State Secretariat for Economic Affairs, the nation’s GDP in the final quarter of 2014 rose by 0.6% from the preceding quarter and rose by 1.9% on an annual basis. The figures were better than the quarterly rise of 0.4% and annual rise of 1.8% forecast by economists.
The main driver of the Alpine nation’s economy was increased private consumption and government spending which increased by 0.3% and 1.9% respectively. Exports meanwhile slipped by 1% on a quarterly basis due to the softness in the Eurozone.
The data was for a period before the Swiss National Bank stunned the markets by ditching the Franc’s cap with the Euro. With the turmoil the announcement caused the nation’s GDP is expected to have taken a knock.
The economics department, which had previously expected Swiss GDP to grow 2.1% this year before the SNB decision, will update its GDP, inflation and unemployment forecasts on March 19, as will the Swiss central bank.
The next data release due for the Swiss Franc will be Friday’s Swiss Inflation rate.
