The pound was frail on Tuesday after dropping to an 11-month low against the dollar overnight on worries over a 'hard' Brexit from the European Union, as simmering U.S.-China trade tensions provided support to the greenback.
Talk of a possible no-deal Brexit sparked fears Britain would crash out of the EU next year without securing a trade agreement.
GBP/USD plunged as far as 1.2920 overnight, its lowest since early September, before making up some losses.
The dollar stayed firm on Tuesday, with the index against a broad basket of currencies steady at 95.345.
EUR/USD was under pressure and fell to 1.1530 overnight, as German industrial orders fell more than expected in June, posting their steepest monthly drop in well over a year. It was last trading slightly higher at 1.1558.
USD/JPY traded down to 111.32 ahead of Thursday's expected bilateral trade talks between the U.S. and Japan in Washington.
