Sterling was stable today as investors kept their hands off the British currency given that the risk of Britain crashing out of the European Union without a divorce deal on October 31 remained high. 

The probability of a no-deal Brexit was still very much a concern for traders as Prime Minister Boris Johnson reiterated that he will take the country out on deadline. 

Even though the British parliament approved a legislature which forces Johnson to request a deadline extension from Brussels if he cannot agree on a deal with the EU by mid-October, the prime minister said he would not do such a thing.

Boris Johnson's senior adviser Dominic Cummings said the UK will leave the EU on time and reporters should get outside London and speak to people who are not "rich Remainers". 

"The market is extremely cautious because of Johnson's stance," said Jane Foley, Rabobank's senior currency strategist. "Anxiety is hanging over markets." 

The pound enjoyed a relief rally yesterday after better-than-expected economic data eased investor worries about a technical recession in Britain, and after Goldman Sachs cut its expectations for a no-deal Brexit. 

Sterling was flat at $1.2345, having jumped to a six-week high the day before. Against the euro, the pound was also flat at 89.40 pence.

Over the course of six months, since the initial Brexit deadline was extended, the pound has shed 7.5% of its value against the dollar, making it one of the worst-performing major currencies.

Meanwhile, average UK earnings including bonuses rose unexpectedly by 4% year-on-year in the three months to July.

This was the biggest pay rise in more than 11 years and compared with a 3.7% growth in June, but the data did not have a major impact on the pound. 

Some investors choose not to consider the current state of the British economy when they trade sterling as Brexit remains their top priority. 

The uncertainty over the relationship Britain will have with the EU after it exits the bloc makes it hard to understand where it will be in five years in terms of trade relations, analysts said.