Sterling edged off an earlier one-month high versus the euro on Tuesday after weak UK industrial output data, though trade was quiet before a close-run US presidential election. UK industrial output fell by 1.7 percent in September, the biggest drop since August 2009 and much bigger than the 0.6 percent decline analysts had forecast.
Combined with weak housing and retail sales figures, this added to worries that Britain's economic recovery will not be sustained into the fourth quarter.
The euro traded at 80.11 pence, having earlier dropped to 79.84 pence, its lowest since October 2, when it held above chart support at its 100-day moving average of 79.66 pence.
But the pound's losses were limited as the data did not shake a growing view that the Bank of England is unlikely to opt for more monetary easing this week.
Most foreign exchange market participants also stayed sidelined as polls indicated the race between US President Barack Obama and Republican Mitt Romney was too close to call.
"The pound didn't react much despite quite a few negative indicators ... The market is looking at other things, the US election and the Greek situation, as the important drivers for now," said Audrey Childe-Freeman, head of foreign exchange strategy at BMO Capital Markets.
The euro was expected to stay under pressure before a vote in Greece's parliament due on Wednesday on measures needed to win further aid to keep the country afloat.
Weak UK data was also offset by even weaker activity data out of the euro zone, which implies a deeper recession than previously expected, as well as figures showing a slump in German industry orders.
Against the dollar, the pound was steady at $1.5990 after falling 0.4 percent on Monday to hit a low of $1.5957. Renewed falls could direct the pound towards the October 23 low of $1.5914.
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