Sterling hits two-week high before tapering off

Sterling rose on Monday to a two-week high before backing off and trading below the opening after the British Government announced the start of the official exit process from the European Union next week. 

GBP/USD last traded at 1.2374, up from the opening of 1.2383, with a session-high at 1.2436, and a low at 1.2367. 

Sterling's rise today came on the back of dollar's decline against a basket of currencies to a five-week low, after the Federal Reserve reaffirmed its gradual approach to tightening policy last week. 

The U.K. government announced it will enforce Article 50 to exit the EU next week, hurting the pound on concerns about a hard exit for the economy. 

On the other hand, the Bank of England upgraded its inflation forecasts in its last meeting, which might pave the way for trimming down the stimulus program and increasing interest rates, in turn buoying the pound and stemming its decline against the greenback.