LONDON Sterling slid to a three-day low against the dollar on Friday, giving up earlier gains as traders awaited trade and industrial output figures eyed for more signs of a slowdown in the UK economy as the Brexit process gathers pace.
A number of forward-looking indicators of sentiment have dipped in the past 10 days, stirring nerves among investors that a weakening of growth predicted by many economists since the vote to leave the EU last June is finally materialising.
Industrial output growth is expected to have slowed sharply in December, and the trade deficit to have narrowed slightly. The data will be released at 0930 GMT.
The pound slipped to a low of $1.2463, having opened the European trading session above $1.25.
(Reporting by Jamie McGeever; Editing by Patrick Graham)