The pound weakened on Friday after stellar gains this week that set the currency up for its biggest weekly gain against the euro since September 2017 on growing confidence that a no-deal Brexit can be avoided.
For now, focus turned to January retail sales data out at 0930 GMT for latest clues on the UK economic outlook, which has taken a back seat in recent weeks for traders.
Having hit two-month highs on Thursday, sterling drifted lower in early Friday trade.
At 0830 GMT, pound was down a third of a percent at $1.2951 , having touched $1.30 on Thursday.
Against the euro, sterling was down over a third of a percent at 87.99 pence and below two-month peaks hit a day earlier at around 87.65 pence.