GBP/USD wobbles near 1.4700 on PMI

FXStreet (Edinburgh) - The British pound remains on the defensive today, dragging GBP/USD to the 1.4695/90 band so far.

GBP/USD muted post-PMI

The pair is extending its negative performance on Tuesday, retreating for the second session in a row and returning to sub-1.4700 levels in spite of the better-than-expected Construction PMI in the UK economy, coming in at 57.8 in December vs.56.0 expected and up from November’s 55.3.

The risk appetite trends will remain the most important drivers for the pair’s price action ahead in the day, as the US calendar will only include second-tier data.

GBP/USD important levels

The pair is now retreating 0.25% at 1.4687 and a breach of 1.4632 (low Mar.18) would open the door to 1.4563 (low Apr.13) and then 1.4500 (psychological level). On the flip side, the next up barrier aligns at 1.4947 (high Dec.24) ahead of 1.5000 (psychological level) and finally 1.5089 (55-day sma).

UK construction PMI rebounds in December, comes in at 57.8

Construction sector performance rebounds in December supported by commercial building activity. Construction PMI in December came in at 57.8, higher than 56.0 expected by markets. The PMI was up from a seven-month low of 55.3 recorded in November. Commercial construction increased at the fastest pace since October 2014.
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GBP/JPY dips to fresh 9-month lows post-UK PMI

The cross in the GBP/JPY remained at multi-month lows below 175 handle following the release of the construction PMI report from the UK, which improved notably in Dec. GBP/JPY capped below 175 handle on UK data
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