The British pound regained its footing to reach a fresh monthly high.

The sterling continued to pare some of the steep declines seen early in the month with a weekly advance of nearly 1 percent against the greenback.

The British pound pared the sharp decline from earlier this month, with the exchange rate bouncing back from a fresh yearly low.

The Canadian dollar remains intimately tied to the broad trends in investors' risk appetite, with prices continuing to show a strong correlation with the S&P 500.

The Bank of England is scheduled to hold its interest rate decision in the week ahead, but market participants may show a fairly muted reaction to the policy meeting as the central bank is widely expected to maintain its current policy stance in September.

The Japanese yen lost ground after advancing to a fresh record-high during the previous week, and the low-yielding currency may weaken further as policy maker step up their efforts to stem the marked appreciation in the exchange rate.

British pound traders will certainly turn their attention to the Bank of England quarter inflation report on tap for the following week, and the central bank’s assessment of the economy should heavily influence the sterling as the MPC maintains a wait-and-see approach for monetary policy.

The British pound fared mediocre over the course of the week, losing ground against most of the major currencies, though finding strength against other currencies.

The British pound found strong support in the latter half of the week, after declining immensely on Monday, and nearly dropping another 200-pips on Tuesday, on a worse-than-expected price data print which indicated that inflationary pressures were easing.

The sterling surged as investors sought a haven in fixed-assets, with yields falling to their lowest level this month as prices surged.