Euro falls below 84p

Sterling hit a three-week high against the euro and climbed towards $1.30 as traders awaited this week’s Bank of England inflation report and policy meeting.

After one Bank of England policymaker voted for a rate rise in March, investors will be watching the bank’s “Super Thursday” for any signs of change in the Bank’s stance of keeping UK interest rates at record lows.

Inflation has overshot the bank’s 2% target, but some say its surge could be limited by sterling’s bounce after UK Prime Minister Theresa May’s announcement of a June general election.