The pound remained in the doldrums, rebounding off earlier lows but staying at very weak levels after last week's spate of dismal UK data prompted expectations of an early Bank of England rate cut.Meanwhile, the dollar stayed sharply higher against all major currencies, reaching 13-month highs against the euro and the pound and nine-month highs against the yen, buoyed by the positive outlook for the US economy and the prospects of further interest rate hikes. "This week has begun broadly as its predecessor concluded: the dollar is on a high and sterling looks increasingly like the 'sick man' of the major currencies," said Bank of New York currency analyst Neil Mellor. Last week saw a surprise sharp downgrade to first quarter UK GDP, as well as a Confederation of British Industry survey showing retail sales at their worst in the poll's 22-year history. Tomorrow will see the release of the latest retail sales monitor from the British Retail Consortium, as well as the latest purchasing managers survey on the key services sector, which has traditionally buoyed the UK economy. Further weakness in these indicators will spark jitters that the Monetary Policy Committee could spring a surprise interest rate cut when it meets on Thursday, although the consensus is for no change. "Although the consensus has it that interest rates will be left at 4.75 pct, there is some speculation that the downside risks to growth have risen to the point where Governor King and his colleagues may feel it appropriate to begin taking action," Mellor said.