Nevertheless, business activity in the construction sector, which makes up around 6.3% of the nation's total GDP, remained firmly above the 50-mark threshold, which separates contraction from expansion, for the 19th straight month in November. Markit/CIPS construction PMI fell to 59.4, compared to October's reading of 61.4 and against forecasts of 61.0. All three areas of construction recorded softer rates of activity growth in November, led by a slowdown in civil engineering, with home building still remaining the strongest performing area of activity in November, ahead of commercial construction.
Then again US currency favored from positive remarks on the nation's economy. The Fed officials become
more and more confident in the US economy that takes them closer to enter a critical phase in its seven-year
combat with the financial crisis by lifting interest rates. However, Fed Vice Chairman Stanley Fischer
reiterated the view that the timing of the first rate hike still depends on broader economic data. If the
labour market continues to improve and there are some signs of inflation starting to rise, then policy makers
will, consequently, normalize the Fed's monetary policy by increasing interest rates, Fischer
said.
Many important data to be released
Today, on Wednesday, US ADP non-farm employment change data will be released and that will give as an insight about what to wait on Friday, when the government will release the official data, which is considered to be one of the most important monthly data if not the most important. Moreover, UK's services PMI and Autumn forecast sentiment will see the daylight today.GBP/USD tests upper trend-line
Already for more than a month GBP/USD is testing the strength of the down-trend, especially its upper trend- line, that started to take its shape at July, when the pair reached a six-year high at 1.7193. The pair's trading range is becoming narrower and that could potentially provoke a break-out. Since the Pound has reached this year's low just recently, we expect a bullish break-out to be the case; however, there still is a downside risk of the pair falling lower, if it fails to breach the monthly S1 at 1.5833.Daily chart
After a dive beneath the weekly PP at 1.5697, even the cluster of SMAs did not help to hold the pair near the 1.57 mark. Now the pair is fluctuating close to this year's low that was reached at the very beginning of December at 1.5585. We think that the likelihood of the currency couple approaching this year's low has increased since yesterday and it the bearish technicals only strengthen the possibility of this scenario.
Hourly chart