The British pound sterling has stabilised against the US dollar. The current quote in GBPUSD is 1.1343. The political news stream in the UK is brimming with events and emotions, but at the moment the pound is "not paying attention". The "focus" is the Bank of England and what is happening with it: investors are trying to understand how quantitative easing will develop further and when exactly the BoE might move on to a new round of tightening.
Today's Financial Times article sheds some light on the outlook. It mentions that the regulator has postponed the start of bond sales until later this month. The amount in question is £838 billion. This means that tightening will not happen for the time being. The bond market, according to the Central Bank's top officials, looks problematic, so it needs a "pause". The Financial Policy Committee supported this decision.
The UK will be active in the macroeconomic calendar from Wednesday onwards. Price statistics are being prepared for release - from general inflation to individual bottlenecks. Volatility in GBPUSD will increase. The consumer price index is expected to rise to 10% y/y in September from 9.9% previously.