Sterling has hit a three-week low against a recovering US dollar today, falling a third of a percent ahead of industrial output and trade data watched for more signs of the economic impact of the Brexit process.

Shortly after 10am the pound was worth $1.2981.

The pound has lost more than 13% in trade-weighted terms since last year's decision to leave the European Union but Britain's trade deficit with the rest of the world remains huge.

Against the euro, sterling is up 0.14% on the day at £0.9026 to the euro.

Sluggish output numbers a month ago also weakened sterling further, although a survey by the Confederation of British Industry in late July suggested manufacturing was improving at the fastest rate since the mid-1990s.

"I'll be intrigued by the production figures; the CBI says order books are full thanks to sterling's weakness and it will be interesting to see if there are any signs of a bounce as a result," said Neil Mellor, a currency strategist with Bank of New York Mellon in London.

"The pound is on the way down. It is drifting towards the lows from last month against the dollar. If we get a weak figure you can imagine the market continuing to sell sterling."