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GBP/USD unmoved by higher PMI data and here is why

The UK has just released the revision to the April flash PMI composite reading and the April construction data. The composite data has been revised higher, to 54, from 52.6. The April construction PMI has just come in higher than forecast, at 53 compared to a prior reading of 50.2. However the Pound has barely moved on these and it remains camped below its 200 day moving average (still at 1.2546) and that has been the case for the past couple of hours. So, if you are wondering what that is, then look no further than the prospect of a dovish BOE policy meeting on Thursday. There is an outside chance the BOE might cut rates later this week, but that is not the view here. The more likely timing on that would be June, to potentially coincide with a similar move from the ECB. That said, there is plenty of scope for the BOE to issue a decidedly dovish statement later this week and it is that prospect which seems to lifting the FTSE 100 to record highs this morning, at the same time as keeping the pound under pressure. The GBP/USD is currently trading at 1.2538 

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