The Pound Sterling (GBP) trades higher against its major peers, except the Euro (EUR), at the start of the week. The British currency moves higher ahead of the European Union (EU)-United Kingdom (UK) trade summit in London on Monday.

Investors will pay close attention to a potential trade deal as it will strengthen economic ties between the economies since the announcement of Brexit.

According to comments from the Head of Trade Policy at the British Chamber of Commerce, William Bain, in a Jefferies-hosted session over the weekend, the potential deal between the UK and the EU would benefit various British industries such as defence, agriculture, and energy.

Bain stated that the non-binding defence pact will unlock business worth 150 billion Euros for UK arms suppliers. The deal between European economies also aims to remove non-tariff barriers across agricultural industries.

For the last week, the British currency has performed strongly on the back of an upbeat UK Gross Domestic Product (GDP) report. The data showed on Thursday that the economy expanded at a robust pace of 0.7% in the first quarter of the year.

This week, investors will pay attention to the UK Consumer Price Index (CPI) data for April to get fresh cues about the Bank of England's (BoE) monetary policy outlook, which will be released on Wednesday.

The data is expected to show that the core CPI – which excludes volatile components of food, energy, alcohol, and tobacco – is expected to have grown at a faster pace of 3.6%, compared to the prior release of 3.4%.

Source: FXStreet