On Tuesday the pound sterling was steady against the U.S. dollar, after data indicated that in February U.K. construction sector activity expanded at a faster rate
than expected.
GBP/USD hit 1.5398 during European morning trade, the session high; the pair subsequently consolidated at 1.5371. It was likely to find support at 1.5328, the low of February 23 and resistance at 1.5460, the high of February 27.
Sterling was higher against the euro, with EUR/GBP slipping 0.11% to 0.7272.
Market research firm Markit and the Chartered Institute of Purchasing & Supply said in a report that their U.K. construction purchasing managers' index increased to 60.1 last month from a reading of 59.1 in January. Economists had expected the index to tick down to 59.0 in February.
Tim Moore, senior economist at Markit, commented that "Housing, commercial and civil engineering activity all expanded at the quickest rates since last October, helped by sharp rises in new business volumes and an improving economic backdrop."
On Monday the dollar was broadly higher after data showed that U.S. manufacturing activity continued to expand in February supported expectations for higher interest rates.
In the euro zone, Spain’s Employment Ministry reported that the number of unemployed people declined by 13,500 last month, compared to expectations for an increase of 10,500. The number of unemployed people rose by 78,000 in January.
Data also showed that German retail sales jumped 2.9% in January, easily outstripping forecasts for a 0.4% increase.
