Pound Rises After U.K. Construction PMI

The British pound strengthened against most major currencies in the early European session on Thursday, after data showed that U.K. construction sector activity rose better-than-expected in June.

Data from Markit and the CIPS showed that the U.K. construction PMI increased to 58.1 in June, from a score of 55.9 in the previous month. It was above the expected reading of 56.5.

Traders now focus on the developments on the Greek debt crisis front and also keep a close eye on the Labor Department's U.S. monthly jobs report. The report is being released a day earlier than usual due to the July 4th holiday.

Economists currently expect the report to show an increase of about 230,000 jobs in June, following an addition of 280,000 jobs in May. The unemployment rate is also expected to dip to 5.4 percent.

In other economic news, data from the Nationwide Building Society showed that U.K. house prices dropped 0.2 percent month-on-month in June, confounding expectations for a 0.5 percent rise. This was the first fall in four months and reversed a 0.2 percent rise in May.

On a yearly basis, house price growth moderated to 3.3 percent from 4.6 percent a month ago. Economists had forecast the growth to slow marginally to 4.5 percent in June.

In the Asian trading today, the pound held steady against its major rivals.

In the European trading now, the pound rose to session's high of 192.92 against the yen, from an early low of 192.26. If the pound extends its uptrend, it is likely to find resistance around the 197.00 area.

Moving away from an early more than a 2-week low of 1.5580 against the U.S. dollar, the pound advanced to session's high of 1.5617. On the upside, 1.60 is seen as the next resistance level for the pound.

Against the Swiss franc, the pound advanced to a 3-1/2-month high of 1.4821 from an early low of 1.4753. The pound may test resistance near the 1.50 area.

Meanwhile, the pound fell to 0.7103 against the euro earlier. Thereafter, the pair held steady.

Looking ahead, U.S. weekly jobless claims for the week ended June 27, U.S. jobs data for June and factory orders for May are set to be announced in the New York session.