Sterling fell against the dollar and euro on Monday, with traders focused on global risk sentiment for direction on the currency ahead of a quiet week in Britain.

By 1109 GMT, the pound was 0.27% lower against the dollar at $1.201 and 0.25% lower against the euro at 88.50 pence .

"There is not a lot happening on the sterling front, we already heard from some Bank of England speakers last week and the calendar is looking pretty quiet," said Francesco Pesole, FX strategist at ING.

Pesole pointed to the upcoming testimony from Federal Reserve Chair Jerome Powell on Tuesday and a jobs report out of the U.S. on Friday as key pointers for the market, with traders poised to assess how much more the U.S. central bank will raise interest rates.

"We will be watching on the cable side but also euro/sterling, because sterling tends to have a higher sensitivity to global risk sentiment," said Pesole.

On the data front, a survey on Monday showed British construction activity growing at its fastest pace in nine months in February after two months of declines, as a rebound in commercial work and civil engineering helped offset a continued fall in house-building.

Remarks are expected from BoE policymaker Sarah Breeden on Wednesday, while a January GDP estimate for Britain is due to be published on Friday. They will give an insight into how the British economy is performing after the previous figures showed it narrowly dodging a recession in December.

The bank rate presently stands at 4% after 10 rate increases in a row by the BoE since late 2021, and the market is pricing in a 93% chance of a 25-basis point rate increase when the central bank meets on March 23 for its next policy meeting .

Data on Friday is expected to show the British economy flatlined in the three months to January.

(Reporting by Lucy Raitano; Editing by Alex Richardson)