The British pound strengthened against the other major currencies in the early European session on Friday, after data showed that the British construction activity growth improved sharply in September as output grew at the fastest pace in seven months.

Data from Markit Economics and the Chartered Institute of Procurement & Supply (CIPS) showed that the seasonally adjusted Marikt/CIPS U.K. Construction Purchasing Managers' Index climbed to 59.9 from 57.3 in August. Economists had expected only a modest improvement with an increase to 57.5.

Meanwhile, the European shares rose, as investors await the U.S. employment data due later in the day to get more clues about the possible timing of the first Fed rate hike.

The U.K.'s FTSE 100 index is currently up 1.09 percent or 66.35 points at 6,138, France's CAC 40 index is up 1.25 percent or 55.25 points at 4,481 and Germany's DAX is up 1.13 percent or 107.21 points at 9,616.

The report is expected to show an increase of about 203,000 jobs in September following the addition of 173,000 jobs in August. The jobs data could have a significant impact on expectations regarding whether the Federal Reserve will raise interest rates later this month.

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

In the early European trading, the pound rose to a 2-day high of 182.22 against the yen, from an early low of 181.33. If the pound extends its uptrend, it is likely to find resistance around the 185.00 area.

Data from the Ministry of Internal Affairs and Communications showed that the unemployment rate in Japan came in at a seasonally adjusted 3.4 percent in August. That was above forecasts for 3.3 percent, which would have been unchanged from the July reading.

Against the U.S. dollar, the Swiss franc and the euro, the pound edged up to 1.5173, 1.4825 and 0.7358 from early lows of 1.5127, 1.4776 and 0.7397, respectively. The pound may test resistance around 1.54 against the greenback, 1.50 against the franc and 0.72 against the euro.

Looking ahead, U.S. jobs data for September and factory orders for August are slated for release in the New York session.

At 8:45 am ET, Federal Reserve Bank of Philadelphia President Patrick Harker is scheduled to give opening remarks before the "New Perspectives on Consumer Behavior in Credit and Payments Markets" conference hosted by the Federal Reserve Bank of Philadelphia.

Half-an-hour later, Federal Reserve Bank of St. Louis President James Bullard is expected to speak on the economy and monetary policy before a Shadow Open Market Committee meeting hosted by the Manhattan Institute for Policy Research, in New York.

At 1:30 pm ET, Federal Reserve Bank of Boston President Eric Rosengren will give welcome and opening remarks before the "Macro Prudential Monetary Policy" conference hosted by the Federal Reserve Bank of Boston. Additionally, Federal Reserve Governor Stanley Fischer is expected to speak at the conference.

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