Just as the Pound was in line to record its first 5-day gain against the US Dollar for a month a sneaky piece of UK news popped up, pulling the currency backwards.
The Pound Sterling to Euro Exchange Rate was in the region of $1.5134 as of 10:40 GMT
1 US Dollar is currently worth 0.6606 pence
As the European session began the Pound was trading higher against the US Dollar and was slightly stronger against the Euro.
However, Sterling slipped from a high of 1.5187 against the US Dollar after UK construction output was shown to have declined by more-than-anticipated.
The GBP/USD exchange rate hit a low of 1.5122
According to figures compiled by the Office for National Statistics, construction output was down 3.4 per cent in May from a year earlier. Economists had forecast a drop of 2.8 per cent. April’s year-on-year decline was revised to 0.7 per cent.
Month-on-month construction output stagnated from April to May.
Although some aspects of the UK economy are showing definite signs of improvement, other sectors remain a drag on domestic growth.
In the first quarter of this year a 1.8 percent drop in construction output helped to limit UK GDP to 0.3 per cent.
However, the National Institute of Economic and Social Research is expecting UK growth to double in the second quarter. They have predicted a 0.6 per cent rise in GDP ‘largely due to the performance of the private service sector.’
While today’s news softly punched the Pound/US Dollar pairing, declines against the Euro were limited as Eurozone industrial production declined as forecast in May. Month-on-month industrial production for April was upwardly revised to 0.5 per cent.
The British currency could experience additional movement in the hours ahead as a result of US news.
Current Pound Sterling (GBP) Exchange Rates
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5134 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1604 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6543 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9281 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6606 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8619 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6049 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5188 >
(As of 10:40 GMT)
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