Sterling drops vs. dollar for first time in four sessions

Sterling bounced off the highest since September 22, 2016 against the dollar, following earlier data from the US, and amid a lack thereof from Britain.

As of 04:47 GMT, GBP/USD shed 0.31% to 1.3058 from the opening of 1.3100, with an intraday high at 1.3117, and a low at 1.3054. 

Earlier from Britain, Treasury Secretary Philip Hammond said there could be a transitional period for his country's exit from the European Union as the UK government grows more convinced of the need for that, noting the duration of the period will depend of drawing up new systems in various sectors, such as customs. 

Hammond said the transitional period Britain need could move up to two years, asserting the government is facing a crucial task of reaching the best deal to support growth and prosperity, while taking all the needed measures to boost wages in the kingdom. 

Otherwise from the US, the Empire State Manufacturing Index fell to 9.8 in July from 19.8, missing expectations of 15.2. 

Policy stand have diverged between Bank of England and the Federal Reserve, as the former is expected to hike interest rates to stave off inflation, especially after labor data bested expectations, as the unemployment rate hit the lowest since June 1975. 

However, chances for a third rate hike by the Federal Reserve this year have subsidized, buoying the pound last week to ten-month highs before dipping today on profit-taking.