Sterling gives up four-week high on profit-taking

Sterling declined in European trade against dollar away from four-week highs and on track for the first loss in four days on profit-taking, while the dollar climbs following spikes in US treasury yields. 

GBP/USD fell 0.25% to 1.3719, with an intraday high at 1.3765, after closing up 0.6% on Friday, the third profit in a row, marking four-week highs at 1.3773.

Sterling also rose 1% last week against dollar, the second weekly profit in a row on expectations the Bank of England will follow the Fed's lead and tighten the policies.

BoE Governor Anew Bailey said the spike in energy prices will strengthen inflationary pressures in the country, and the country might intervene to contain risks.

The dollar index rose 0.2% on Monday on track for the first profit in four sessions against a basket of major rivals.

US 10-year treasury yields rose 2.75% today towards four-month highs at 1.636%, bolstering dollar demand.

The Federal Reserve is expected to start trimming its bonds purchases program next month, with markets pricing a US rate hike in September 2022.