Sterling hit a seven-month high against the dollar on Wednesday as the Conservatives continued to lead the polls in the run-up to the general election next week.
Friday saw another sudued session of trading in global foreign exchange markets.
The pound was little changed on Thursday, despite the release of poll data predicting a big win for Conservatives at the next general elections and a strong reading on UK consumer confidence.
The European Central Bank's newly arrived leader Christine Lagarde is facing pressure from the governing council to overhaul how monetary policy is decided and improve the monetary authority's internal decision-making process.
Sterling shot higher on Monday after Nigel Farage said the Brexit party will not stand in the 317 seats won by the Conservatives at the 2017 general election, boosting Boris Johnson's chances of success in the upcoming election.
Rate-setters in Moscow surprised some analysts at the end of the week with a larger than expected reduction in short-term official interest rates.
The pound was unfazed by the Speaker of the House, John Bercow's, decision not to allow a "meaningful vote" on the Prime Minister's Brexit proposal to go ahead on Monday, as some observers had correctly anticipated.
China released third-quarter GDP figures on Friday showing the economy grew at its slowest pace since the early 1990s as the trade war with the US took its toll.
Parliamentary approval of Prime Minister Boris Johnson's Brexit deal proposal would most likely pave the way for interest rate hikes, a top Bank of England policymaker said.
Traders shied away from pushing Sterling any higher on Thursday despite confirmation that the UK and the European Union had reached an agreement on the terms of the former's withdrawal from the bloc.
It was a volatile day for Sterling as a succession of contradictory headlines around whether the outlines of a Brexit deal had in fact been agreed or not cascaded across traders' screens throughout the day.
Sterling popped back above 1. 28 in afternoon trading following a report that the Northern Irish DUP had accepted the Brexit proposals tabled by Westminster, removing the biggest stumbling block to a deal being approved with the European Union.
Negotiators for the UK and the European Union are close to reaching a draft deal for Britain's withdrawal from the bloc.
Sterling popped higher on Tuesday after the EU's top Brexit negotiator, Michel Barnier, said a Brexit deal is possible.
Sterling was on its back foot at the start of the week, but only slightly so, as traders tried to gauge the probabilities of a withdrawal deal being reached before 31 October.
Sterling hit a three-week high on Friday, rising above the $1. 25 mark after European Council President Donald Tusk said he had received "promising signals" that a Brexit deal was possible.
Thursday proved to be a volatile session for sterling traders, despite the generally 'risk-on' backdrop in financial markets globally following reports that Beijing was still open to a limited trade deal.
The pound was once against buffeted by the ongoing twists in the Brexit negotiations on Wednesday, bouncing back from five-week lows before retreating once again.
Sterling tumbled on Tuesday as hopes of a Brexit deal faded, hitting a one-month low against the euro amid reports that Downing Street now deems a deal "essentially impossible".
The pound drifted slightly lower at the start of the week after The Daily Telegraph reported that the Prime Minister, Boris Johnson, was ready to go to the Supreme Court in order to avoid having to ask Brussels for another extension if he had not clinched a withdrawal deal by 19 October, as the Benn Act required of him.