The pound was higher against its major counterparts in the European session on Tuesday, after a data showed that the UK construction output grew at the fastest pace in seven months in June.

Survey data from IHS Markit and Chartered Institute of Procurement & Supply showed that the construction Purchasing Managers' Index rose to 53.1 in June from 52.5 in May. The latest reading pointed to the sharpest rise in construction output since November 2017.

The survey showed that residential work remained the best performing area of activity. Commercial building also contributed to the stronger overall rise in construction output.

Sentiment was buoyant as German Chancellor Angela Merkel reached a deal with her interior minister over the migration policy, helping avert a political crisis in the country.

The currency showed mixed trading against its major counterparts in the Asian session. While it rose against the yen and the franc, it held steady against the euro and the greenback.

The pound rose to 146.38 against the yen, from a low of 145.28 hit at 9:45 pm ET. On the upside, 148.00 is possibly seen as the next resistance level for the pound.

Data from the Bank of Japan showed that Japan monetary base advanced 7.4 percent on year in June, coming in at 493.363 trillion yen.

That follows the 8.1 percent gain in May.

Having fallen to 1.3115 versus the greenback at 9:30 pm ET, the pound reversed direction and climbed to 1.3196. The next likely resistance for the pound is seen around the 1.33 level.

The pound firmed to a 4-day high of 1.3106 against the franc, following a 4-day decline to 1.3033 at 5:00 pm ET. The pound is seen finding resistance around the 1.33 region.

The pound edged up to 0.8833 against the euro, reversing from a low of 0.8862 hit at 9:30 pm ET. The pound is likely to find resistance around the 0.87 level.

Data from Eurostat showed that Eurozone retail sales remained unchanged in May as the increase in food sales was offset by a decline in non-food products turnover.

Sales were expected to gain 0.1 percent, reversing a 0.1 percent fall logged in April.

Looking ahead, U.S. factory orders and durable goods orders for May will be out in the New York session.

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