GBP falls down after weak data

GBP fell down against USD and high risk currencies on Tuesday ahead of  the UK Construction PMI release amid disappointing forecasts. That could rise concerns about the additional measures from Bank of England to support the slowing economy.

In the MPC minutes of Sept 8 meeting  BOE said that “the need in a new round of assets purchases to support the economy is becoming more obvious”.  On Sep. 29 the chief economist Spencer Dale said the central bank has the tools available to provide additional “monetary loosening” should the economy continue to get worse.

The pound showed the biggest drop down today against NZD (-0.6%). The rate retreated 0.1% against Euro, although rate GBP managed to strengthen 0.2% against JPY. At 08:30 GMT the Construction PMI report was released, showing the decline to 50.1 from 52.6 in August. Figure was lower-then-expected 50.6.

Recently published report showed an unexpected growth of UK manufacturing PMI in September. The CIPS index grew up to 51.1 from 49.4 in August.

GBP/USD has passed the support at $1.5420 (76.4% of movement $1.5332-$1.5700) and tested $1.5405/00. Clear break below that level supposes the possibility of the fall down to $1.5330 and further to the daily Bollinger base at $1.5315. Further support remains around the channel line since May 24 (today at $1.5256). The nearest resistance is at $1.5530.