While growing bets on cutting US interest rates sent the greenback down against other major currencies, sterling hit its highest level in a month against the dollar on Monday.

The pound was up 0.2% to $1.2963, after touching a one-month high of $1.2975 earlier in the session. According to Chris Weston, head of research at broker Pepperstone, “the bulls will aim for the 1.3000 level, just like the highs of 1.3044 reached on July 17. Volatility markets suggest that a break of 1.3044 during the week is a 12% probability.” Against the euro, the pound sterling hit a high of more than two weeks at 85.09 pence per euro. It was 85.15p for the last time