Investing.com - The pound shrugged off a ‘subdued start to 2018’ for the UK construction industry, following a disappointing data release.
At 10:50 GMT, GBP/USD was 1.4215, down 0.37% from the previous session’s close of 1.4268.
Previous to the construction data release, cable was down at 1.4224. The dollar pushed higher against most major currencies ahead of the US jobs report release at 13:30 GMT.
The pound had rallied on Thursday night against the dollar to highs of 1.4278.
Research firm IHS Markit and the Chartered Institute of Purchasing and Supply (CIPS) said that UK construction purchasing managers' index (PMI) dropped to 50.2 last month, down from December’s reading of 52.2.
The reading comes close to the 50.0 mark which separates contraction and expansion in the industry.
The consensus figure was 52.0.
The report found that house-building activity shrank in January, while job creation also slowed. Work in civil engineering increased. The UK construction industry suffered a blow with the collapse of Carillion in January.
Thursday’s UK manufacturing PMI also came in lower than expected. At a seven month low, the PMI reading for January was 55.3. Investors will be looking to the release of the services PMI on Monday, as a greater indicator of economic growth.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.28% at 88.73.
The greenback also remained supported from Wednesday’s hawkish comments from the Federal Reserve. The US central bank indicated confidence in economic growth and inflation.
EUR/GBP increased 0.16% to 0.8784. Against the dollar, the single currency was in the red, EUR/USD was down 0.22% to 1.2486.
Sterling was higher against safe haven currencies. GBP/JPY was 156.24, up 0.15%, while GBP/CHF was up 0.08% to 1.3226.
The pound traded higher against the commodity currencies. GBP/AUD was up 0.39% to 1.7812, with GBP/NZD up 0.35% to 1.9352.
GBP/CAD was almost unchanged at 1.7506.