The pound traded around $1.33, remaining near its weakest level since July 1, as investors assessed a batch of stronger-than-expected UK data while the US dollar stayed supported by rising Middle East tensions and fresh US tariff measures.
UK retail sales rose 1% in June, beating expectations for a 0.3% decline, helped by warmer weather and increased spending during the football World Cup.
Consumer confidence also improved to a six-month high in July, while the Bank of England's Decision Maker Panel survey showed easing inflation expectations.
Meanwhile, the S&P Global PMI indicated UK business activity returned to growth, exceeding forecasts.
On the trade front, the US announced new tariffs of 10% to 12.5% on dozens of countries, including the UK and EU. Britain said the measures would not negatively affect UK businesses, with the existing UK-US trade agreement remaining in place and delivering improved terms on some exports, including whisky and medical technology.