Sterling held in the mid-1.3600s against the US dollar at the start of the week, staying close to its highest level since 11 February after Friday\u2019s rise and extending a near month-long uptrend. The dollar remained under pressure near its weakest point in more than three months, as markets pared expectations of an imminent Federal Reserve rate rise on signs of cooling price pressures. Separately, the US Treasury said last Wednesday it would at least double buyback operations for long-dated government debt from September, which prompted a retreat in US bond yields and kept the greenback subdued.<\/p>\n\n
Geopolitical risk, however, continued to lend the dollar some support as tensions between the US and Iran threatened to intensify. US Treasury Secretary Scott Bessent is due to outline what he described as the toughest sanctions in history on Iran on Monday, while Iran\u2019s Supreme National Security Council secretary, Mohsen Rezaei, warned Tehran could halt oil exports through the Strait of Hormuz and elsewhere in the Persian Gulf. Markets are also weighing inflation risks from volatile oil, which maintain the prospect of at least one Fed hike by year-end, with attention turning to the US PCE Price Index on Wednesday and Fed Chair Kevin Warsh at Jackson Hole; technically, GBP\/USD is watching 1.3660 above, with 1.3600 and 1.3570 as nearer supports.<\/p>\n\n\n\n