21.07.201404:33:27UTC+00Sterling recovers from 3-week plunge

The British pound sterling has recovered from a three-week plunge last Friday. It was trading at $1.7099, previously $1.7037.

"Overall, we still believe the euro is going to face more downside pressure. The chances are we're going to see more aggressive action from the ECB in coming months. We prefer selling the euro versus the yen and sterling," said Mitul Kotecha, Head of FX strategy at Barclays.

No major data will be released in Europe on Monday. Investors will focus on flash PMI reports due Thursday.

In Britain, Bank of England’s minutes of the July meeting, retail sales figures, and 2nd quarter gross domestic product report are due later in the week.