? Sterling Unmoved on As-Expected UK Construction Data

06 June 2012 08:46 GMT THE TAKEAWAY: UK PMI construction fell in May -> Decline was expected by economists -> Sterling little changed versus US Dollar, Yen
The UK purchasing managers’ index for construction fell in May to 54.4 from 55.8 in April, Markit economics said today. The decline came in line with expectations. The index gauges industrial sentiment by surveying major players in the industry.
UK PMI construction reached a 21-month high of 56.7 in March before falling in April, and a reading above 50 indicates an expanding market. The data is part of a string of reports used by the Bank of England in policy decisions aimed at stimulating economic growth and managing inflationary pressures.
Referencing current political instability in the Eurozone, BoE Governor Mervyn King recently said that growth prospects in the UK are now lower than they were three months ago, adding that the UK cannot qualify the damage that would be done by a breakup of the Euro. Mr. King added that even the threat of Euro-area risk is enough to slow UK growth.
The British Pound remained stable after today’s release and was well supported against the US Dollar after recent weakness since the beginning of May.
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06 June 2012 08:46 GMT

Euro Unmoved Following Positive Industrial Production Data

12 April 2012 10: 02 GMT the takeaway: industrial production in the euro area increased by 0.5% in February, bat the expectations of analysts-> low production in Germany prevails over 13% increase to the Netherlands-> stays at the same level after the report to the EUR/USD

Eurozone industrial production increased 0.5% for the month of February, led by the France and the Netherlands. Actual production beat average estimates of a decline of 0.2%. However, the figures were 1.8% lower in February of the previous year, as expected by analysts.

The number can be seen as a sign of economic stabilization for the euro area; and a drop in industrial production in Germany and Spain was offset by the improvement of the production in France and the Netherlands. The German numbers released last week were not fully represented in number of today as the collapse of the production of the construction was not included in the survey of the euro area.

EUR/USD do not strongly respond to better than expected data. The pair rose and fell following the release, but who later moved back to the initial level.

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12 April 2012 10: 02 GMT