The pound fell against the euro today following data that pointed to a weakening of the UK economy.

As the markets closed for the day the pound was trading at €1.4822.

Figures from the Office of National Statistics (ONS) showed that factory gate had inflation fallen to its lowest level for 18 months.

Meanwhile, according to the Office of the Deputy Prime Minister, house prices remained sluggish last month relieving inflationary pressures.

"The data does suggest that the economy is not in such great shape as many are assuming," Ian Stannard, senior foreign exchange strategist at BNP Paribas, told the Reuters news agency.

This comes at a time when the chancellor Gordon Brown is facing growing pressure over the medium-term state of the economy and its ability to deliver cash for the government's spending plans.

Analysts will be watching closely this week as the likes of Lloyds TSB, British Energy, Kingfisher and MyTravel all issue interim results or trading statements.