Pound Sterling Breakout against the Euro and Dollar Still On: BofA

An energy market crunch that is driving higher UK gas imports could already be weighing on the Pound says an analyst at Deutsche Bank.

The British Pound starts the new week just below multi-day highs against the Euro and Dollar amidst a revival of buying interest, which some analysts say could extend over coming days and perhaps weeks.

Analysts at Wall Street bank Goldman Sachs say they identify upside risks to their UK interest rate and British Pound forecasts, although such a bullish view is not shared by their contemporaries at HSBC.

A sudden turn lower in global market sentiment ahead of the weekend reignited demand for safe haven currencies at the expense of the British Pound.

"We continue to expect GBP to strengthen in coming months" - Citi.

Pound Sterling endured a soft start to September but a series of events leaves the currency pointed higher over coming days.