LONDON: Sterling inched higher on Monday at the start of a week which is likely to see players focused on the divergence in fortunes of the UK economy and its neighbours in the euro zone. The pound has hit stickier territory in the last couple of sessions after gaining against the euro and dollar on bullish signs about British growth and, traders say, sales of dollars stemming from Vodafone's sale of its main U.S. business. But either way the headline numbers dwarf those in a euro zone where price changes are only just holding in positive territory. The market took an above-forecast Ifo survey from Germany in its stride on Monday. "Any more substantial move will probably be initiated from outside the UK," analysts from KBC said in a morning note. "In this respect, sterling traders will keep a close eye on ECB comments and on the euro zone February CPI, scheduled for release on Friday. We maintain a sell-on-upticks approach for the euro."

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