The pound is enjoying a strong rally at the moment, currently hovering just below 1.13

The pound climbed for the third consecutive day against the single currency, reaching up to a two month high of 1.1270 following the positive words of leading policy makers.

• During the early trading sessions, the pound found slight support as rallying equities firmed up demand for sterling, though the pair remained relatively range bound.
  
• On the US session, a speech from Ben Bernanke saw a sharp spike in demand for the pound as his comments on the need for a strong dollar strengthened confidence in the global economy.
  
• Sterling was able to hold its gains following comments from BoE policy maker Andrew Sentance who highlighted the risk of stoking inflation if the central bank keeps emergency stimulus measures in place for too long as Britain's economic recovery gains traction.
  
• For sterling, the focus remains on whether or not the Bank of England has finished asset purchases under its quantitative easing programme, with the minutes to its November meeting set to be released on Wednesday.
  
• The minutes will probably be the key event for the pound this week, given the high degree of uncertainty surrounding the voting pattern.