Sterling was little changed against the euro and the dollar on Monday as markets awaited UK inflation and housing market data for further confirmation that interest rates have peaked. In a session with no key UK data, the pound shuttled in a narrow range ahead of the Royal Institute of Chartered Surveyors (RICS) house price survey for October due at 0030 GMT on Tuesday.
The September measure of the housing market tumbled to its lowest level since June 1995. Economists are predicting a further fall, which would provide more evidence that Britain's housing boom is over.
"House prices have an impact on interest rates and are a major factor driving sterling," Ian Stannard, a senior currency strategist at BNP Paribas.
"But as long as the market believes interest rates have peaked, sterling will struggle to make gains," he said.
The sterling stood at $1.8521 against the dollar, down 0.24 percent on the day. Against the euro the pound traded at 69.85 pence - barely changed on the day and above Friday's 10-month low of 70.13 pence.
The consumer price index for October, a key gauge of inflation, will be released at 0930 GMT on Tuesday. It is expected to show that inflation crept higher as utility charges surged and oil prices hit record highs.
The mid-range estimate from economists polled by Reuters was that the year-on-year rise in the consumer price index rose to 1.2 percent in October from 1.1 percent in September, still keeping well below the Bank of England's two percent target.
The pound plumbed its lowest levels since January against the euro last week after an inflation report from the Bank of England that signalled that interest rates were likely to remain on hold at 4.75 percent.
Labour market statistics and the minutes from this month's Bank of England policy meeting will be released on Wednesday followed by October retail sales data on Thursday.
The Bank has raised interest rates five times in the past year and signs are now that tighter monetary policy is slowing down house price inflation.
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