Euro starts recovering against Sterling

Euro rose in European trade on Monday against a basket of major rivals, starting to recover from a two-week trough against the pound, with the market still expecting the European Central Bank to raise interest rates by 25 basis points this month.

Investors also await a variety of important data on the UK, which will help determine the likely path ahead for monetary policies. 

EUR/GBP rose 0.4% to 0.8573, with a session-low at 0.8532, after losing 0.1% on Friday, resuming losses back then to near a two-week low at 0.8520.

Euro lost 0.55% last week against the pound, the first weekly loss in three weeks on concerns about a widening policy gap between Europe and the UK as Bank of England continues to aggressive raise interest rates.

ECB

Euro await ECB President Christine Lagarde's speech later this week in addition to remarks by several other ECB officials to gauge the likely path ahead for European monetary policies. 

UK Economy

Later this week, a batch of important UK labor and GDP data will be released.

Such data will provide fresh pricing for Bank of England's next policy move at the August meeting.