Reportedly, the ECB is analyzing the possibility of the change of the current inflation target of "below but close to 2%". It weakened the EUR
British pound reaches day's minimum versus euro after UK PMI data
On Tuesday, the British pound sank to the day’s minimum versus the common currency after data unveiling that activity in the British construction sector tumbled for the first time for 13 months in September drove concerns that the UK economy’s losing momentum.
The common currency EUR/GBP slumped 0.2% hitting 0.8854.
As financial data firm Markit states, its construction purchasing managers’ index dived to 48.1 in September versus August’s reading of 51.1.
House building surge decreased to a six-month minimum, while civil engineering work slumped at its fastest tempo since April 2013.
Construction companies faced a sag in workloads mainly because of bad confidence and low risk appetite among customers, especially in the commercial building sector. That’s what the report unveiled.
Uncertainty as for the path to Brexit also appeared to be a crucial factor in this slowdown.
The British pound was still lower versus the firmer greenback reacting to the report.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…