Sterling fell in European trade on Tuesday against a basket of major rivals, resuming losses against the dollar and backing away from a three-year peak on profit-taking.
The US dollar gained ground amid progress in US-China trade talks with negotiations extended for another day in London.
The Bank of England is facing divisions on monetary policy easing, hurting the odds of a rate cut in June, with traders awaiting fresh UK labor data this week to gather more clues.
The Price
GBP/USD fell 0.25% to $1.3520, with a session-high at $1.3564.
The pound rose 0.2% on Monday against the dollar after a 0.35% drop on Friday on profit-taking away from a three-year high at $1.3617.
US Dollar
The US dollar rose 0.25% on Tuesday and approached a two-week high against a basket of major rivals.
It comes amid concerns about an economic slowdown in the US and China receded with both sides conducting important talks in London for a second day.
UK Rates
The recent vote in the BOE showed a clear division between members on the path ahead for interest rates, with current odds of a 0.25% rate cut in June settling below 30%.
Now traders await important UK jobless claims, unemployment, and wages data for April to gather more clues.
