Sterling was soft at the start of a new week following the release of domestic GDP data that showed July's economic rebound was weaker than expected. UK GDP rose 0.2 percent in July, less than the 0.3 percent figure the market was expecting, nevertheless, this was still a sizeable bounce-back from June's -0.6 percent reading which was largely as a result of the extra bank holiday to mark the Queen's Platinum Jubilee. The ONS said the UK's economic rebound in July was largely driven by growth in the services sector, but the bigger picture was one of stagnant economic activity with growth being flat on a rolling three-month timeline.

Looking at the details of the UK GDP data shows, outside of services, activity was weak: industrial production (-0.3 percent) and construction output (-0.8 percent) disappointed, while manufacturing output (0.1 percent) recorded an expansion in July.

Across the channel, the Euro starts the new week better supported on the back of Ukraine’s successes on the battlefield. Ukrainian liberation forces made significant gains in a counter offensive against Russian forces in the northern Kharkiv region, suggesting a potential tipping point in the conflict.

Finally, the Dollar's trend of appreciation remains intact on a longer-term basis and any setbacks in the Greenback are therefore widely viewed as temporary.