Sterling fell against a strengthening dollar and was steady against the euro on Tuesday after softer than expected house price data, and flat monthly UK consumer credit figures.
Data released by the Nationwide building society showed British house prices remained steady in November.
But the November annual rate of increase slipped back to 2.4 percent after picking up to 3.3 percent in October.
Analysts said housing data would be looked at closely in coming months both in the US and UK as investors speculate about the future trajectory of interest rates in the two major markets.
"I think the market is starting to focus on the US housing market and when it does that it will also turn to the UK housing market as well," said HSBC currency strategist David Bloom.
By 1504 GMT, sterling had fallen more than 0.8 percent on the day to $1.7154 but stayed above two-year lows hit on Monday at $1.70490. Against the euro, the pound was virtually unchanged at 68.41 pence.