Sterling ticked up on Monday after last week's decline as investors awaited fresh momentum from survey data out on Thursday.

At the time of writing the Pound was up 0.12% at $1.2615 after falling 0.25% last week.

Trading volumes are likely to be low throughout the day due to the Presidents' Day holiday in the US.

Elsewhere, the Euro edged down 0.1% against Sterling at 85.42 pence. The single currency declined to a six-month low against the Pound last week at 84.98 pence as UK wage data surpassed forecasts, offering Sterling a boost.

However, it increased again when the Pound dipped as UK inflation figures were lower than projected, Reuters reports.

Currencies were likely continued to be comparatively subdued until central banks begin slashing interest rates later this year, says ING global head of markets, Chris Turner: "Volatility in FX markets derives from volatility in interest rate markets, and because policy expectations are now sort of flat for the time being, we're not getting that source of volatility."

The survey-based purchasing managers' index data, which is due to be published on Thursday, should give an indication as to the health of Britain's economy in February.

Investors predict the Bank of England to make around 70 basis points of interest rate cuts in 2024, a fall from 110 at the start of this month.

In addition, they forecast an approximate 55% chance the first BoE cut will occur by June.

Last Friday, the Bank of England's chief economist Huw Pill said progress on inflation has been fairly modest up to now.

"I do think that we will have to wait several more months before we can be convinced that the squeezing out of the persistent component of inflation is there," Pill commented during a panel discussion hosted by the United States National Association for Business Economics.

Data released last week revealed UK inflation was steady at 4% last month, going against forecasts for an increase yet remaining above the central bank's target of 2%.