The pound slid down against the backdrop of weak PMI data in the construction sector, where the reduction took place with 53.8 to 51.6. This reflects a slowdown in growth that was seen last month, showing only a slight increase, so that the market reaction seems exaggerated, but probably it will cause a lot of stops on the way down. Nevertheless, the data have increased fears that the construction sector will not support growth as the size needed for recovery. On the background of some central banks to raise interest rates and expectations of further QE, Britain is somewhere in between. One member of the Monetary Policy Committee now wants to vote for the QE, the other wants to increase interest rates. This morning it became clear that the pound is enough waywardness and prone to more volatility than usual. Range of 3% for the pair EUR / GBP over the past week are best illustrates this.
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