Pound bulls were out in full force following expectations, and subsequently powerful speculation, that BOE Governor Mervyn King will maintain his hawkish stance when policy makers meet again in July.
Even beyond that , speculation is now emerging that interest rates may have to extend out to another rate hike, helping the benchmark rate to climb above 6 percent as inflationary pressures continue to rise in the UK economy. Ultimately, the bullish notion is likely to remain in the market, helping to keep the pound sterling supported just below the 2.0000 figure until this week?s pivotal releases help to break the currency out of its recent ranges. Traders will keep an eye out for Nationwide housing prices and gross domestic production reports, both of which are expected to lend further strength to the current sentiment.