Sterling hit a two-week low on Tuesday ahead of UK employment data that investors will scrutinise for signs of how much British businesses are hurting from uncertainty over Brexit.
While most economic data in Britain has been solid in recent months even in the face of messy EU divorce proceedings, the worry for investors is that months of inventory stockpiling by British firms could show up this quarter.
The first signs of this could come in today's employment data due at 08:30 GMT.
Sterling was down 0.2 percent against the dollar on Tuesday to a two-week low of $1.2928 in early trade and down 0.25 percent against the euro at 86.89 pence.
The British currency is also being dragged lower by the broader environment, with trade tensions between the United States and China hurting stocks earlier this week.
Source : Reuters