Sterling rallies to seven-week high

Sterling rose on Monday to a seven-week high as the dollar gave up ground against a basket of currencies, while markets await for the official British exit process from the European Union to start this week. 

GBP/USD last traded at 1.2563, up from the opening of 1.2514, with a session-high at 1.2616, and a low at 1.2510. 

Sterling's current rise comes after a negative start for the dollar, which hit a five-month low against a basket of rivals after the U.S. administration pulled its healthcare law before voting in Congress due to lack of support, stocking doubts about its ability to pass other market-oriented laws such as corporate tax cuts and infrastructure spending. 

Dollar's weakness helped the dollar rise as well specially as markets await the activation of Article 50 in Britain to officially exit the EU, which buoyed the pound as markets brace for any surprises. 

Sterling drew some recent support after inflation rose in Britain, which might push Bank of England to raise interest rates soon, specially after one member already voted to increase rates in the last meeting.