The pound eased lower in the European session, weighed down by US dollar trading which again featured gains against major currencies.
Currency markets generally moved calmly at the beginning of the week with movements still hovering around the same price.
The pound sterling has previously been helped by growing confidence that the Bank of England (BOE) will raise interest rates to address high price pressures.
The market now expects interest rates to be raised by the BOE at a policy meeting to be held on November 4.
However, the latest UK data published last week showed mixed readings causing investors to doubt the action the central bank will take.
Last week, investors were exposed to a decline in inflation and retail sales data readings. Still, stronger figures in manufacturing and services PMI data, give a different view that the momentum of the UK economic recovery remains strong.
At the time of writing, the pound traded lower at 1.3745 against the USD, failing to maintain momentum to be strong at 1.3800.
Meanwhile, the dollar index rose higher to around 93.75 against a basket of major currencies.
