Sterling traded in tight ranges against the euro and dollar on Monday after mixed UK economic data failed to give it direction, and investors remained cautious ahead of key US releases this week. Sterling lost some ground versus the dollar after Confederation of British Industry data showed retail sales falling sharply in January.

At 1518 GMT sterling traded at $1.8855, trimming earlier losses which saw it drop as low as $1.8787. It traded steady against the euro at 69.08 pence.

The British consumer confidence index compiled by GfK Martin Hamblin surged in January to its highest level in more than two years, to +1 against a forecast -3, the same level as for December.

However, the Confederation of British Industry's distributive trades survey, also released on Monday, showed a sales balance of -3, the weakest since September when it was -9 and well below the +21 that economists had expected.

Copyright Reuters, 2005