Investing.com - The pound pushed higher against the dollar in quiet trade on Monday, as calm returned to financial markets after concerns over slowing global growth and soft U.K. inflation data triggered volatility last week.
GBP/USD was up 0.25% to 1.6133, not far from session highs of 1.6135.
Data on Friday showed that U.S. consumer sentiment rose to the highest level since July 2007 this month and another report showed that U.S. housing starts rose more than expected in September.
The data reinforced expectations that the Federal Reserve will raise interest rates in the second half of 2015 and calmed investor jitters at the end of a volatile week of trading.
Sterling slumped to 11-month lows against the dollar mid-week after data showed that the annual rate of U.K. inflation slowed to 1.2% in September, down from 1.5% in August.
The data eased pressure on the Bank of England to raise interest rates from a record low 0.5%.
On Friday, BoE Chief Economist Andy Haldane said the bank could afford to keep rates lower for longer and indicated that rates may only start to rise in the middle of next year, given the more subdued growth outlook.
Haldane pointed to slowing global growth, heightened geopolitical and financial risks and weak U.K. inflationary pressures due to slow domestic wage growth and falling commodity prices worldwide.
Elsewhere, sterling was higher against the euro, with EUR/GBP sliding 0.18% to 0.7914 as concerns over the stagnating euro zone economy continued to weigh on the single currency.
The European Central Bank launched its new stimulus program on Monday, purchasing covered bonds in a bid to boost the euro area economy.