Sterling strengthened a touch against the dollar and euro on Monday as traders grappled with the implications of the previous week’s outsized rate hike by the Bank of England. The pound rose 0.15% against the dollar to $1.2735, regaining some of its 0.83% loss from the week before, the currency’s biggest weekly decline since mid May. It also firmed against the euro, which was down 0.13% at 85.54 pence, as soft German business sentiment data weighed on the European common currency. Monday’s moves in sterling were in the shadow of the Bank of England’s larger-than-expected 50 basis point interest rate hike, which ... (full story)