Sterling showed little reaction to a report that showed the biggest British house price rise in 15 months, and a separate survey of purchasing managers that showed an unexpected expansion of growth in the manufacturing sector in October.
Britain's Monetary Policy Committee (MPC) is seen leaving rates on hold at 4.5 percent next week after lowering them by a quarter percentage point in August, its first rate cut in more than two years.
Sterling was trading at $1.7650 as of 1445 GMT, down around 0.3 percent from Monday's close in New York. The euro rose around 0.3 percent against the pound to 67.92 pence.
The pound posted a half percent gain against the euro in the previous session after Spain's Telefonica SA said it would buy British mobile phone firm O2 Plc for 17.7 billion pounds.
A Japanese bid approach for British glassmaker Pilkington also helped buoy the pound to a near-20 month high against the yen.