Sterling stumbles as dollar rises
The dollar rode high in the last 24 hours against both the euro and the pound.
This morning the dollar stood at 1.7565 to the pound and 1.1933 to the euro.
With data out in the US indicating that factory orders are on the rise - up two per cent in August according to the government - the signs have been positive for the dollar.
In contrast the pound is wavering amid a comparatively quiet period for economic indicators barring the latest CBI survey, which outlined the continuing downturn in consumer spending.
Further evidence from some of the high street's retailers in the shape of trading updates from Ted Baker and Austin Reed is expected to shape sterling's trajectory moving forward this week.
The UK is also gearing up for the next interest rate decision, set to be announced on Thursday.
Standard Chartered currency strategist David Mann told Reuters "the big picture" seemed to be that "the economy is not doing as well as previously thought".
"The interest rate outlook is looking increasingly like we will get a rate cut," he added.