Sterling gains but focus remains on Britain's slowing economy         

Bank of England, which has raised interest rates five times since December, is attempting to tackle soaring inflation while avoiding a recession

The war in Ukraine and its economic fallout, in particular soaring food and energy inflation, has been a major drag on the euro, which has weakened 8% against the dollar this year.

Sterling rose against the dollar and euro, as traders focused on any signals that the Bank of England could raise interest rates faster than expected. 

The British currency last week concluded its steepest six-month drop since the Brexit referendum in 2016, down more than 10% against the dollar this year.