07, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The production in the construction sector fell less than initially expected in April, adding additional signs that the economy is emerging from the last year recession. Markit/CIPS Purchasing Managers' Index in Construction (PMI) rose to 49.4 in April, up from 47.2 in March, slightly below the 50 threshold. The production of the construction sector has been one of the weaknesses and took 0.2 percentage points from GDP.

"The sector has shown signs of stabilizing in April," - said the CIPS CEO David Noble. "It's a sensible signal that things get better in the industry, but the construction is still declining, and we are seeing a reduction in new orders."

The index of Great Britain (PMI Services) business activity in the service showed us the expected growth in April. The indices are better than we expected: 52.9 vs. 52.5. Nonfarm Payrolls in the U.S. showed a rooted at 165K against expectations of 146-155K in April. The pound sterling has increased by 40 points.