LONDON, Jan 23 Reuters The pound fell slightly on Thursday as currency markets remained focused on U.S. President Donald Trump39;s threats of tariffs in his early days back in the White House.

Sterling was last down 0.14 at 1.2311. It remains around 1.1 higher since the start of the week, reflecting investor relief that Trump has concentrated on other policy areas rather than tariffs since his inauguration on Monday.

The euro was marginally higher against the pound at 84.55 pence.

Britain39;s currency slid at the start of the year even as the country39;s bonds fell and yields shot higher, in what analysts said was a worrying breakdown of a relationship that reflected investor aversion to the UK.

Sticky inflation, low growth, and depressed business confidence after Finance Minister Rachel Reeves39;s taxandspend budget in October have all been blamed for the volatile episode, which was also driven by a selloff in U.S. government bonds.

Sterling has independently been repriced since the start of the year, said Jane Foley, head of FX strategy at Rabobank.

There39;s less news this week but I think the market is facing the fact that there39;s going to be less growth and higher inflation than previously imagined.

Data this week has shown British pay growth stayed strong in the three months to November, although there were signs of labour market weakness, and that borrowing jumped in December as interest costs climbed.

However, bond yields have returned to where they…