Bank of England considering urgent reform of deposit guarantee scheme

The Financial Times reported on Sunday that the Bank of England is considering a major overhaul of its deposit guarantee scheme, including boosting the amount covered for businesses and forcing banks to pre-fund the system to a greater extent to ensure faster access to cash when a lender collapses.

GBP/USD update

GBP/USD edged lower on Friday but remained close to a 10-month high and had been supported by an improving appetite for risk. GBP/USD ended 0.88% lower and fell from a high of 1.2546 to a low of 1.2398. It will be a big week of British data that could provide clues on the outlook for monetary policy.