Sterling held steady against the Dollar and edged up against the Euro on Monday after touching its weakest last week since November.

According to weekly data from the US markets regulator, investors have scaled back their positions on the Pound and are maintaining a fairly neutral stance.

Sterling was flat at $1.2367 at the time of writing, having fallen to its lowest in five months last week.

The performance of the Pound is often more evident against the Euro, as it removes the Dollar from the equation, Reuters reports.

Sterling has depreciated by approximately 3% against the Dollar in 2024, mainly because traders are reassessing how much US interest rates might decline this year.

Investors are pricing in around two quarter-point cuts by the Bank of England in 2024, compared to less than two from the US Federal Reserve and almost three from the European Central Bank.

The Pound is up 0.45% against the Euro, but its advantage over the single currency has eroded over the past week.

The Euro gained 0.1% against Sterling at 86.21 pence.

"We feel the rebound in EUR/GBP might have happened a bit too early, and still see risks below 0.8600 in the short term as markets hold greater dovish conviction on the ECB than the BoE," said ING strategist Francesco Pesole.

"Ultimately, beyond the short run, the upside potential for EUR/GBP should still be unlocked by the BoE cutting more aggressively than the market currently prices in, in our view," he went on to say.

The upcoming risk event for Sterling is the release of preliminary business activity surveys for April on Tuesday. Currently, the UK leads major economies in terms of purchasing managers' surveys.

The UK has surpassed the United States every month so far this year, with a reading of 53, above the 50 line that separates growth from contraction.