Investing.com - The pound fell against an advancing dollar on Tuesday after data revealed an uptick in U.S. construction activity, which fueled expectations for the economy to gain steam and keep the Federal Reserve on course to raise interest rates next year.
In U.S. trading on Tuesday, GBP/USD was down 0.55% at 1.5645, up from a session low of 1.5632 and off a high of 1.5743.
Cable was likely to find support at 1.5585, Monday's low, and resistance at 1.5765, Monday's high.
The Census Bureau reported earlier that U.S. construction spending rose 1.1% in October from a month earlier, beating market estimates for a 0.6% gain after a 0.1% contraction in September.
It was the largest gain since May, and the report boosted the dollar by cementing expectations for the Federal Reserve to hike benchmark borrowing costs in 2015.
Investors were keeping an eye towards Friday, when the Bureau of Labor Statistics will release its November jobs report.
Meanwhile in the U.K., construction activity expanded at the slowest rate in more than a year in November, dampening optimism over the country’s economic outlook, according to industry data.
Market research firm Markit Economics and the Chartered Institute of Purchasing & Supply reported that their U.K. construction purchasing managers' index declined to a seasonally adjusted 59.4 in November from 61.4 in October. Economists had expected the index to fall to 61.2 in November.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
"The construction sector remains a strong growth engine within the UK economy, but momentum has undoubtedly cooled since the summer," said Tim Moore, senior economist at Markit and the report's author.
Elsewhere, sterling was up against the euro, with EUR/GBP down 0.10% at 0.7919, and up against the yen, with GBP/JPY up 0.12% at 186.46.
On Tuesday, the U.K. is to release what will be a closely watched report on service-sector growth.
The U.S. is to release the ADP report on private-sector job creation as well as industry data on service-sector activity.