GBP/USD, EUR/USD flows: 6yr low in UK construction PMI; expiries

Not the sort of number to really catch the markets imagination but it is arguably quite notable – UK construction PMI down to 38.2 from 40.2, weakest result in 6 years. Construction looks to be the current epicentre of downward pressure on the UK economy where supply constraints and demand weakness are combining, and is the sort of number than tends to reinforce the case for dovish wait and see from the BoE. EZ construction PMI meanwhile modestly higher in May at 43.7 vs 41.7.

Otherwise markets remain locked in very tepid trade. Options expiries are tending to add to the Iran whipsaw exhaustion apathy with very large expiries today, over EUR3bn around 1.16~ alone giving the pair little incentive to move without a stronger trigger. 1.157-575 and 1.163/64 otherwise the nearest clusters around the current pivot.