The Pound advanced against the US Dollar in a session relatively devoid of economic data releases.
Sterling made gains earlier in the session after a report showed that construction activity in the UK slowed slightly in February. Despite the decline the data did little to dent confidence in the nation’s economic recovery.
The Pound was able to push higher against the US Dollar after the ‘Greenback’ was softened by improved risk sentiment and a waning demand for safe haven currencies. The tense situation in Ukraine seems to have lessened somewhat after Russian President Vladimir Putin said that military intervention is not needed and that there will be no war against the Ukrainian people.
According to the Markit its Construction PMI fell from January’s figure of 64.6 to 62.6 in February. The dip is being largely blamed on the floods and storms which hit much of the south of the UK.
“Bad weather took a bite out of progress in house building, but UK construction remains on a strong growth trajectory in February,” said Markit senior economist David Noble. Job creation in the sector climbed to a three month high.
The Dollar could recover its losses if the Ukraine situation deteriorates. Market sentiment remains fragile, and is likely to remain that way until either an accord is made between Kiev and Moscow or Russian troops withdraw from the Crimea.
The US currency also continues to find some support from yesterday’s data releases which showed that manufacturing production and consumer spending rose and suggested that the US economy is continuing to grow.
US Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,
,Pound Sterling,0.5991 ,
US Dollar,,Euro,0.7268 ,
US Dollar,,Canadian Dollar,1.1075 ,
US Dollar,,Australian Dollar,1.1179 ,
[/table]
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