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Sterling retreats from 1-month highs before CPI data
[LONDON] Sterling retreated from its highest level in a month against the euro on Tuesday in early London trade, tracking a broader consolidation of recent moves in major currency markets as investors await UK inflation data for January.
The pound racked up its sixth straight day of gains against the common currency on Monday, its best run in more than four months as the euro struggled to shake off French political worries and Greek debt strains.
The UK currency was also helped by solid manufacturing and trade data at the end of last week which eased concerns sparked by other more forward-looking numbers that last year's Brexit vote was finally beginning to weigh on the British economy.
Ahead of the inflation data, it was steady at US$1.2532 and 0.3 per cent lower at 84.80 pence per euro.
"The pound will be looking to build on its bullish momentum ... when it takes in UK inflation today," analysts from currency exchange Lmax said in a morning note.
"Anything on the hotter side of expectation will likely give the currency another boost."
Inflation numbers are due at 0930 GMT.