The pound rallied from its lowest level in 5 1/2 years as traders awaited signals from the Bank of England about the path of interest rates amid speculation the recent selloff has gone too far.

Sterling also rebounded from Friday’s one-year low against the euro and climbed versus most of its 16 major peers. How far this advance has to run may be determined by a slew of economic reports due this week, including data on inflation, wage growth and retail sales. BOE Governor Mark Carney will give his thoughts on the outlook for the U.K. for the first time this year on Tuesday, while fellow Monetary Policy Committee member Gertjan Vlieghe is speaking late Monday.

Britain’s currency has declined 3 percent versus the dollar in 2016 as global market turmoil sparked by China and concerns Britain may vote to leave the European Union drive investors away.

The pound rose 0.1 percent to $1.4270 as of 4:55 p.m. London time, after sliding to $1.4248, the lowest level since May 2010. It strengthened 0.4 percent to 76.28 pence per euro, its biggest gain in a week and up from 76.95 on Friday, the weakest level since Jan. 21, 2015.

Source : Bloomberg