Robust expansion in Germany led the euro off lows, but growing expectations the ECB will ease monetary policy next week kept gains muted.
The Federal Reserve released minutes from its last meeting, where it discussed the procedures for hiking interest rates.
Adam Cole, head of currency strategy at RBC, says he is "constructive" on sterling.
Henry Dixon, U.K. equity portfolio manager at GLG, and Chris Turner, head of FX strategy at ING Financial Markets, discuss the strength of sterling and whether it is time to take profits.
The Australian dollar fell more than half a percent, on a slide in prices of iron ore, one of the country's biggest exports.
The dollar teetered near a three month low against the yen on Monday, hit by falling U.S. interest rates.
The dollar extended losses against the yen, trading near two month lows and putting it on course for a big weekly loss.
The euro was back against the dollar on Friday, rebounding from a 2-1/2-month trough as investors booked profits on bearish positions.
The euro bounced back thanks to the Bank's of England's loose monetary policy and Asian central banks.
The euro steadied against the dollar on Wednesday and rebounded from a 16-month trough against the British pound.
Mark Carney, governor of the Bank of England, discusses the impact of the exchange rate on the U.K. recovery.
Traders borrowing U.S. dollars to fund investments in other currencies should beware, with analysts expecting the greenback to strengthen.
The euro fell against sterling on growing bets the European Central Bank and the Bank of England will take opposite courses of action.
Percival Stanion, head of asset allocation at Baring Asset Management, says the UK pound is "definitely vulnerable" as the outcome of the 2015 general elections may not be as business-friendly as investors may expect.
The euro slid after strong words from European Central Bank chief Mario Draghi halted its march to a 2-1/2 year high.
The euro slid further in early trade in Europe on Friday after strong words from European Central Bank chief Mario Draghi that halted its march this year to a 2-1/2 year high.
The US Dollar, euro and British pound are all falling following a meeting of the European Central Bank.
Positive signs from the US economy have failed to boost the greenback, while tensions in Ukraine are driving traders to the yen.
The yen rose to a two-week high against the dollar on Monday after a survey showing China's manufacturing activity contracted.
The dollar inched up from a three-week low on Friday, on expectations of a robust U.S. jobs number, after a weak growth report earlier this week.