The GBP continues to move higher vs its rivals - the USD and EUR.

The reasons for Sterling strength last week included the unveiling of the belt-tightening budget that was approved by credit rating agencies and bond markets, as well as hawkish minutes that showed one member calling for an interest rate hike.

That member of the MPC (Monetary Policy Committee) was Andrew Sentance and he was on the Reuters wires today saying that the UK budget does not change his views that an interest rate hike is needed. He blames Sterling's weakness as part of the reason that UK inflation remains so resilient and believes that the GBP is below its equilibrium level.

Those comments gave the Pound a pop and helped it to push above the 1.5050 levels.

The Pound also moved below its support from last week at 0.8180 which was a 20-month low for the pair.

In the current environment the Pound is definitely seeing signs of strength as the markets take the new budget to mean that the UK is serious about tackling its budget deficit and we have some talk of raising interest rates. Both are positive for the Pound.