Investing.com - The pound trimmed gains against the dollar on Tuesday after data showed the rate of expansion in the U.K. construction sector slowed in February, while hopes that the crisis between Russia and Ukraine is easing helped risk appetite.
GBP/USD hit session highs of 1.6717 ahead of the data, and was last up 0.07% to 1.6675.
Cable was likely to find support at 1.6615 and resistance at 1.6767, Friday’s high.
The Markit U.K. construction purchasing managers' index fell to 62.6 in February from 64.6 in January. Analysts had expected the index to fall to 63.0.
The report said heavy rain and flooding in parts of the country had contributed to softer construction output growth in February, especially in house building.
“Bad weather took a bite out of progress in house building, but U.K. construction remains on a strong growth trajectory in February,” senior economist at Markit David Noble said.
Job creation in the sector hit a three-month high and firms remained highly positive about their expectations for business activity over the year ahead, survey complier Markit said.
Meanwhile, market sentiment recovered on Tuesday after a report that Russian President Vladimir Putin had ordered troops engaged in military exercises close to Ukraine’s borders to return to base.
Investors remained cautious after President Barack Obama said the U.S. was considering economic sanctions to "isolate Russia" following its military incursion into Ukraine’s Crimea region over the weekend.
Elsewhere, sterling was steady against the euro, with EUR/GBP edging up 0.03% to 0.8242.