A breakthrough was made on Brexit negotiations on Friday.
Sterling slipped on Monday thanks to a group of Conservative members of parliament agreeing to sign a letter of non-confidence
On Thursday, the Bank of England is expected to raise interest rates for the first time since 2007.
The European Central Bank announced it would start to withdraw from its easy money scheme by reducing its bond purchasing programme by €30 billion, as expected.
Dollar trading near 13-session high
The pound hovered just below a 15-month high on Monday.