UK construction PMI was broadly neutral

UK construction PMI was broadly neutral, rising 0.2 points to 57.3 but coming in 0.2pts below expectations of 57.5. With 6% of total UK output, the importance of construction activity is rather limited. More important to the aggregate outlook is the services PMI out this afternoon. So far though, the construction and manufacturing PMIs have been fairly robust to recent market turmoil and a continuation of that theme for the services PMI should be GBP supportive if a repricing of UK rate prospect follows. 

Despite Carney reiterating that the rate debate will come into sharper focus around year-end in Jackson Hole, markets continue to attach a near-zero probability to a hike on that time horizon and a full hike is not priced for another 12 months. 

"We continue to like long GBP strategies to take advantage of this mispricing in rates", says RBC Capital Markets.