Sterling falls to 1-month low, banks and data weigh
* Sterling falls to one-month low of $1.9654 GBP=
* Jitters about banking sector keep currency under pressure
* HSBC results highlights banking sector woes
LONDON, Aug 4 (Reuters) - Sterling fell to a one-month low against the dollar on Monday as jitters about the health of the financial sector came to the fore and weak data deepened gloom about the health of the economy.
British construction activity fell at a record pace in July as the credit crunch took an increasing toll on the property market and the economy slowed, a survey from the Chartered Institute of Purchasing and Supply showed [ID:nL4245019].
Europe's biggest bank, HSBC (HSBA.L: Quote, Profile, Research) reported a 28 percent fall in its first half profit as a $14 billion hit on bad debts on U.S home loans offset strong Asian growth [ID:nL487970].
Asia-focused Standard Chartered (STAN.L: Quote, Profile, Research) is expected to report a 21 percent rise in first half profits on Tuesday. But Barclays (BARC.L: Quote, Profile, Research) is forecast to post a 36 percent profit drop and Royal Bank of Scotland (RBS.L: Quote, Profile, Research) is seen posting a loss later in the week.
"It's a consolidation of the assumption that the UK economy is going nowhere very, very fast and the banking sector is looking very wobbly," said Jeremy Stretch, strategist at Rabobank.
The UK banking sector is seen as a good indicator for the performance of the pound as it is a key part of the UK's service-driven economy. Continued...
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