With no significant economic data to help boost the British pound, the currency fell quickly and sharply under the weight of the dollar rally. The only piece of data that was released was the BBA loan numbers for the month of April. 

According to the group, home loans fell 13 percent in the month of April (from 75098 to 64815). The economic calendar is comparatively light for the UK this week, with only Tier 2 data due for release. This includes GfK consumer confidence, mortgage approvals, the CBI distributive trades survey and PMI manufacturing. None of these reports should alter the market?s expectation of another rate hike by the Bank of England this year. Last week, the minutes from the most recent Bank of England meeting revealed that they were debating between a 25 and 50bp rate hike.