Sterling hit a two-week high against the euro at the end of last week after upbeat economic data strengthened the likelihood of a November rate rise, but important data this week will further influence currency values.

This morning sterling was worth $1.8825, €1.4847 and 221.8400 yen, buoyant on last week's surveys pointing to strong house price growth and higher-than-expected consumer price inflation and retail sales.

More house price news is expected today when Rightmove publishes its September House Price Index, while on Wednesday the Council for Mortgage Lenders will release its monthly mortgage lending figures.

Also on Wednesday the Bank of England will publish its Minutes of the Monetary Policy Committee (MPC) meeting, which will add further insight into forthcoming rate rises.

On the political front, the Liberal Democrats are holding their annual conference in Brighton this week and the government will tomorrow make an announcement on the luggage restrictions at British airports, introduced after the terror alerts last month.

Tesco and Woolworths will announce their interim results on Wednesday, while another supermarket chain, Morrisons, will announce its results on Thursday.