* Pound dips after last week's jump
* Sterling susceptible to Brexit sentiment
* Graphic: World FX rates in 2019
* Graphic: Trade-weighted sterling since Brexit vote (recasts, updates prices)By Tommy WilkesLONDON, March 4 (Reuters) - Sterling fell on Monday as PrimeMinister Theresa May's top lawyer tried to clinch a Brexitcompromise with the European Union in a last-ditch bid to winover rebellious British lawmakers.
The pound had gained earlier in the session on signs somepro-Brexit lawmakers were willing to compromise with May,increasing the chances she will get her Brexit deal throughparliament next week."Despite a strong start for the pound, dismal constructionsector data and a strengthening dollar saw sterling drop below$1.32," said City Index senior market analyst Fiona Cincotta.Britain's construction industry reported the first fall inactivity in almost a year last month, with the HIS Markit/CIPSPurchasing Managers' Index (PMI) falling to 49.5 in Februaryfrom January's reading of 50.6, although the pound was unmovedafter the release.
Media reports over the weekend suggested London wassoftening its demands of the European Union in renegotiatingparts of the Brexit withdrawal deal that is deeply unpopularwithin large parts of May's own Conservative party.The Sunday Times said a group of Brexit-supporting lawmakerswho previously rejected May's deal have set out changes theywant to see to her agreement in return for her support. The British parliament is set to vote on May's deal nextweek, although the vote could be held sooner. If it fails topass, lawmakers will get to vote on whether to delay Brexit,currently set for March 29.Hopes for a delay to Brexit and bets that a no-deal Brexitis a far less likely outcome sent sterling surging last week ashigh as $1.3351. The British currency is up 3.7 percent againstthe dollar so far in 2019 and 4.7 percent versus the euro.On Monday, though, sterling fell 0.3 percent to $1.3167, itslowest since Feb 26. It traded broadly flat against a weakereuro at 85.92 pence.
While Brexit negotiations dominate the headlines, concernsabout a slowdown in the British economy continue to build.The PMI for Britain's dominant services sector is publishedon Tuesday.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^UK construction PMI vs GDP ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Tommy Wilkes and Tom Finn; editing by LouiseHeavens, and Andrew Cawthorne)
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