Investing.com - The pound dipped against the dollar on Tuesday after data showing that growth in the U.K. construction sector unexpectedly slowed in July due to weaker housebuilding and civil engineering.
GBP/USD eased to 1.5588 from around 1.5604 ahead of the report.
The Markit construction purchasing managers’ index fell to 57.1 from 58.1 June, which was the highest level in four months. Economists had expected the index to rise to 58.4.
Housebuilding activity grew at the slowest pace since April, Markit said, underlining the challenge that policymakers face in tackling a chronic housing shortage.
Civil engineering activity also expanded at a slower pace last month, but activity on commercial projects bucked the overall slowdown, rising at the fastest rate since March.
The report came one day after another Markit survey showed that activity in the U.K. manufacturing sector ticked higher last month but remained relatively subdued.
Sterling was lower against the euro, with EUR/GBP rising to 0.7039 from 0.7030 earlier.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid 0.15% to 97.45.
Investors were looking to the latest U.S. nonfarm payrolls report, due to be released on Friday. The consensus forecast is that the report will show jobs growth of 215,000 last month.
Monthly jobs gains above 200,000 are seen by economists as consistent with strong employment growth.
The Federal Reserve has said a strengthening labor market is a key factor in deciding when to raise short term interest rates.