According to the online broker Capex.com, the pound is likely to remain under pressure as the market bets on further rate cuts from the Bank of England, although expectations of more aggressive rate cuts from the Federal Reserve should ease the decline.

George Pavel, managing director of Capex.com, said the market was pricing in a full percentage point rate cut by the Federal Reserve this year, while a rate cut in the UK was likely to be more limited by comparison.

Traders will likely continue to watch UK economic data, including employment data next Tuesday and inflation data on Wednesday, for clues on Bank of England policy. The pound could rise if unemployment falls, but could weaken if inflation comes in below expectations.