Edward Culchenko
The UK construction sector showed higher production volume in February. According to the preliminary report published by the Office for National Statistics, the index increased by 5.5% as compared to January’s figures.
However, if to compare the results with those seen in February 2012, there is a 7% decline. The data are not subject to seasonality and can be revised.
However, there is still the threat of a triple recession in the British economy despite the fact that the NIESR expects the UK GDP to increase by 0.1% this quarter.
According to Scotiabank, the British economy may grow only if the construction sector shows a sharp increase in construction volume in March.
The preliminary GDP report will be published on April 25th.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of GBPUSD. The currency pair is retracing after recent upswing.
A break above 1.5411 will give way to 1.5500/25, 1.5585/88. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.5033 (as shown below).
Edward Culchenko
