The gains we witnessed yesterday were quickly wiped out during today's trading session as the GDP/USD cross fell nearly a cent after the UK's construction sector expanded at is slowest pace since October 2013.
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The Markits Construction PMI figures, which were released at 9:30 this morning fell to 59.4 from 61.4 in October, causing GBP/USD exchange rates to drop from $1.5731 to $1.5636 over the course of the day.
Although the construction index was comfortably above the 50.0 growth threshold, the upcoming UK elections are starting to cause some uncertain times for the UK economy and it seems business confidence is starting to suffer. If other sectors start to follow suit, the next couple of months could have a severe impact on the value of the pound.
What to look out for tomorrow.
After today's disappointing construction number all eyes will turn to tomorrow as Chancellor George Osborne delivers his Autumn Statement. So why could this impact the currency markets? Well, government spending and borrowing can have a huge impact on the economy, if the government are spending more they generate extra work for contractors which in turn creates extra jobs. If Mr Osbornes comments are positive tomorrow we could see the pound claw back some the ground it lost against some of its major counterparts today.
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