Pound Rises Fifth Day Versus Euro as U.K. Construction Increases The pound rose for a fifth day versus the euro as a report showed a gauge of U.K. construction based on a survey of purchasing managers increased for a fourth month in August, reaching the highest in almost six years. Sterling touched a three-month high versus the common currency before Bank of England policy makers meet this week. U.K. construction activity climbed to 59.1 last month from 57 in July, Markit Economics and the Chartered Institute of Purchasing and Supply said. The median estimate in a Bloomberg News survey was 56.9. The pound also rose as Verizon Communications Inc. agreed to buy Vodafone Group Plc (VOD)’s 45 percent stake in Verizon Wireless for $130 billion. “The pound is boosted by the assumption that the data is looking much better in the course of recent weeks,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London. “Markets have perhaps realized that they’ve been maintaining sterling net-short positions for too long. Vodafone news also helps.” A short position is a bet that an asset price will fall. The pound appreciated 0.3 percent to 84.63 pence per euro at 2:20 p.m. London time after reaching 84.46 pence, the strongest level since May 21. Sterling was little changed at $1.5561. The latest reading in U.K. construction output showed the fastest expansion since September 2007, Markit said in a statement. Manufacturing output rose to a 2 1/2-year high of 57.2 last month, a report showed yesterday. A reading above 50 indicates expansion.
Posted on: Tue, 03 Sep 2013 13:50:07 +0000
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