On Tuesday the pound rose to one-week highs against the U.S. dollar,
as sentiment on the greenback remained fragile ahead of the Federal
Reserve's highly-anticipated policy meeting scheduled next week.
Meanwhile, market participants were awaiting the Bank of England's upcoming policy statement due on Thursday.
GBP/USD was last at 1.5390 - up 0.74%, the pair's highest since September 1.
Sentiment on the dollar remained fragile after Friday's U.S.
jobs report failed to provide much clarity on when the Fed will decide
to raise short term interest rates.
The Labor Department reported that the U.S. economy added 173,000 jobs last month, the smallest increase in employment in five months and was below expectations for 220,000, while the unemployment rate dipped to 5.1%, its lowest level since April 2008.
However, many analysts consider the data still showed a strong labor market and that the rate hike is not off the table.
Market players were also awaiting the Bank of England's upcoming policy statement on Thursday, for further indications on whether or not it plans to raise interest rates in the near future.
Sterling was also higher against the euro, with EUR/GBP dropping to 0.7256.
