The Pound Sterling (GBP) is also quietly consolidating its recent recovery and trading within an exceptionally tight range in the mid-1.35s, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

Spreads seem to be supportive

"This week’s domestic calendar is heavy, offering CPI on Wednesday, preliminary PMI’s and public finance figures on Thursday, and retail sales on Friday."

"The outlook for relative central bank policy remains supportive and the UK-US 2Y spread is threatening fresh highs as markets fade their expectations for BoE easing. Gov. Bailey is scheduled to speak at Jackson Hole, on Saturday. BoE commentary has been limited in the aftermath of the latest split decision, intensifying the focus on Bailey’s speech and its tone."

"The multi-month trend remains bullish but the recent loss of momentum is notable with an RSI hovering in the upper 50 area. The latest consolidating is being observed just above the 50 day MA (1.3502) and recent resistance has been observed around 1.36. We look to a near-term range bound between 1.3500 support and 1.3600 resistance."