The dollar dipped versus the yen, although potentially decisive events such as the Federal Reserve meeting midweek limited movements.
Valentin Marinov, director of FX strategy at Citi, says the Bank of England will raise interest rates in November, though better data out of the U.K. could bring the hike forward.
The dollar was up around a third of a percent against the yen as markets listened to the Bank of Japan's latest comments on policy on Friday.
The U.K.'s pound has roared higher as Mark Carney, the governor of the Bank of England, surprised markets.
Simon Derrick, chief currency strategist at BNY Mellon, says the cost of living crisis has been "the number one issue" for the U.K. economy and discusses the Bank of England's guidance.
Retail sales missed expectations, and state unemployment benefits claims climbed higher than expected.
The euro neared a four-month low versus the dollar and a 1-1/2 year trough against sterling on Wednesday.
Marvin Barth, head of foreign exchange research for Europe at Barclays, discusses the U.K. economy and the strength in sterling.
The dollar extended gains against the euro, amid expectations that the Federal Reserve could raise rates sooner than expected.
The euro weakened against the dollar, as yield differentials between Treasuries and Bunds widened to multi-year highs.
The euro rose against the dollar and the yen on Monday, on confidence that the ECB will not be easing policy again soon.
The euro languished near four-month lows after the European Central Bank's loosened monetary policy.
The dollar rose, getting a lift from fatter Treasury yields and investor anxieties about policy shifts from the ECB.
Subdued euro zone inflation data kept expectations of aggressive European Central Bank monetary stimulus alive, much of which is priced in.
The euro fell against the dollar on speculation of further monetary stimulus from the European Central Bank.
The yen levelled off on Friday but still looked set to rack up its best gains for months after a jumbled week of currency moves.
The U.K. economy will expand at its fastest rate this year since 2007, according to forecasts by the BCC out on Friday.
The dollar neared a two-month high against major currencies, pausing after rallying due to a hold in sterling and the euro's fall.
The leader of the UK Independence Party claims the UK cannot stop 'known criminal gangs' from countries like Romania entering the country.
The euro fell to a three-month low on Wednesday as expectations solidified for an ECB attack on monetary policy next week.