Sterling drops below 1.35 versus dollar

Sterling tilted lower against the dollar following earlier data from Britain, and after Federal Reserve Bank of New York President William Dudley spoke about workforce development at Onondaga Community College, in Syracuse.

As of 04:58 GMT, GBP/USD declined 0.28% to 1.3466 from the opening of 1.3504, with an intraday low at 1.3465, and a high at 1.3571. 

Earlier UK data included the report on financial stability, before Brexit chief negotiator David Davis countered reports of Britain's readiness to pay 40 billion pounds as a Brexit bill, adding that "i won't give a number in the air, that would be ridiculous, but we have a good idea about our direction in this issue". 

Davis described European calls for Britain to contribute to the retirement budget in the region as "can be discussed at least, while asserting his country won't accept the rulings of the European Justice Court after the transitional phase, noting this is a core issue for Brexit proponents. 

On the same note, Moody's credit company cut its credit ratings for long-term British debt to AA2 from AA1 with a stable outlook, due to economic uncertainty after Brexit, and amid worries about " a potential decline of the British economic durability in the medium term due to exiting the Union", while pointing to increased budget pressures due to activity slowdowns and increased challenges regarding the complicated Brexit negotiations. 

Otherwise, Dudley said that the economy is in "good position" and the Fed will move on with its policy tightening plans, ahead of similar speeches later today by Federal Reserve Bank of Chicago President Charles Evans, and Federal Reserve Bank of Minneapolis President Neel Kashkari, while Fed Chair Janet Yellen is expected to talk tomorrow.