LONDON, Oct 21 Reuters The pound fell on Monday as investors focused on the relative strength of the U.S. economy, pushing up the dollar.

Sterling was last down 0.2 at 1.3023, just above Thursday39;s twomonth low of 1.2975.

The euro was up 0.1 at 83.35 pence, although it remained near its lowest level in 212 years against Britain39;s currency.

The U.S. dollar has climbed against its peers in recent weeks as the economy has fared better than expected.

Last week, data showed retail sales grew more than anticipated in September and jobless claims fell the previous week, helping moderate investors39; bets on Federal Reserve rate cuts and pushing up Treasury yields.

By contrast, figures released last Wednesday showed British inflation fell more than expected in September to 1.7, below the Bank of England39;s 2 target, causing traders to increase their bets on deeper rate cuts in the UK.

British 10year bond yields fell below those on U.S. bonds for the first time since midAugust last week , making dollardenominated U.S. debt look more attractive and boosting the dollar.

This week, investors will be focused on comments from Bank of England Governor Andrew Bailey, starting with a speech tomorrow, and purchasing managers39; index data on the private sector39;s performance in October.

We still think the market is underpricing the pace of the BoE easing cycle, said Chris Turner, global head of markets at ING.

Should Bailey add to some of his rare comments that the BoE…