Investing.com - The pound was little changed against the U.S. dollar on Friday, hovering near five-year highs after the release of lower than expected U.K. construction data, as markets awaited a highly anticipated U.S. employment report later in the day.
GBP/USD hit 1.6870 during European morning trade, the session low; the pair subsequently consolidated at 1.6889, easing 0.02%.
Cable was likely to find support 1.6807, the low of April 30 and resistance at 1.7000.
Markit research group said the U.K. construction purchasing managers\' index fell to 60.8 in April, from a reading of 62.5 the previous monh. Analysts had expected the index to tick down to 62.0 last month.
The pound had rallied to its highest level since August 2009 against the dollar on Thursday, after data showed that manufacturing activity in the U.K. expanded at the fastest rate in five months in April, bolstering the outlook for the wider recovery.
A recent string of upbeat reports about the U.K. economy has raised expectations the Bank of England could raise borrowing costs ahead of other central banks.
Investors were looking ahead to the upcoming April nonfarm payrolls report, which was expected to show that the recovery in the labor market was continuing.
Sterling was steady against the euro, with EUR/GBP dipping 0.01% to 0.8209.
In the euro zone, Markit said Spain's manufacturing PMI ticked down to 52.7 in April, from a reading of 52.8 the previous month, compared to expectations for a rise to 53.4.
In Italy however, the manufacturing PMI rose to a 35-month high of 54.0 last month, from a reading of 52.4 in March, beating expectations for a rise to 52.8.
The final euro zone manufacturing PMI ticked up to 53.4 in April, from 53.3 in March. Analysts had expected the index to remain unchanged last month.