Sterling falls for first session in three against dollar

Sterling fell in American trade versus dollar away from November 15 highs for the second session, while still on track for the fifth weekly profit in a row. 

As of 05:08 GMT, GBP/USD tumbled 0.67% to 1.2899, with an intraday high at 1.2986, and a low at 1.2890. 

Earlier UK data showed retail sales fell 1.4% in December, compared to a 1.3% increase in November, while core prices slumped 1.3% in December, compared to a 1% increase in November. 

Retail sales rose 3.0%, slowing down from 3.4% in November, while core sales rose 2.6%, slowing down sharply from 3.5%. 

A government report indicated phone calls were made and were constructive between PM Theresa May and German Councilor Angela Merkel, with discussions still ongoing with the EU to determine the path forward with Brexit. 

The British Parliament voted overwhelmingly to reject the Brexit deal with the EU set up by PM Theresa May, while still saving the PM from a no-confidence vote by a slight margin. 

Earlier US data showed industrial production rose 0.3% in December, slowing down from 0.4% while edging estimates of 0.2%. 

The capacity utilization rate rose to 78.7% from 78.6%, while analysts expected no change. 

The University of Michigan released its consumer sentiment survey, showing a steep drop to 90.7 in January from 98.3 in December, matching expectations.