Sterling Edges Up Against Dollar as Inflation Data Looms

The British pound is edging up against the US dollar on Monday as the greenback stays soft ahead of crucial inflation data and interest rate decisions this week.

Citing high energy prices and an above-consensus August non-farm payrolls print, Chris Turner from ING said 'the dollar should really be doing better than it is.'

'The fact that it is not probably owes to the still constructive investment environment,' he added, where global equity markets continue to perform well.

The focus now shifts to Friday's US Consumer Price Index report, with ING expecting month-on-month readings of 0.4% headline and 0.2% core, which could nudge the Federal Reserve towards a 25 basis-point cut at its September 16 meeting.