Sterling pauses after four-week rally as investors brace for US sanctions on Iran

The British pound ticked lower against the dollar on Monday, easing from a four-week rally and as investors braced for a wave of U.S. sanctions on Iran and its trading partners.

Sterling GBP= dipped nearly 0.1% to $1.3633 by 0956 GMT, after hitting a more than six-month high of $1.3675 on Friday. The pound was flat versus the euro EURGBP= at 85.57 pence to the common currency.

Providing some relief to concerns about a sluggish economy, economists at the Resolution Foundation think tank said economic productivity was starting to show signs of sustained improvement, on the back of data last week that also pointed to strength among businesses and consumers.

Meanwhile, Prime Minister Andy Burnham told European Council President Antonio Costa that London should be bolder in pursuing closer ties with the European Union, ahead of a UK-EU summit this year.