Britain struck Syria with cruise missiles on Saturday in partnership with Western allies, targeting chemical weapons facilities. But the military action did not appear to hurt risk appetite as bond yields rose and the dollar fell.

Sterling on Monday rose 0.1 percent to $1.4250, continuing a two-week rally against the dollar that on Friday saw the pound push towards a new post-Brexit referendum high.

Data on British unemployment, wages and inflation numbers are due this week.

Markets expect the Bank of England to raise rates by 25 basis points next month as it tries to curb inflation and with Brexit-related risks having subsided for now and wage data still pointed upwards.

"With markets almost fully discounting a BoE rate hike, this week's run of monthly indicators are anticipated to give the hike a green light," Marc Ostwald, a global strategist at ADM Investor Services International in London, said in a note.

Against the euro, sterling fell 0.1pc to 86.69 pence per euro , but remained at its highest against the single currency since late May 2017.