Sterling rose 0.15% to around 1.3345 against the US dollar in Monday’s European session, as GBP/USD pushed higher while the greenback softened. The move followed renewed expectations of a US–Iran diplomatic track after a pause in Middle East military action. The US military said further strikes on Iran were unnecessary because targets had been exhausted, and the US Dollar Index (DXY) was down 0.25% to about 101.20, tracking the currency’s weaker tone against a basket of six majors.
Recent GBP/USD Performance and Market Drivers
GBP/USD had earlier edged up 0.1% on Friday to 1.3326, while UK government bonds were described as being tugged between fiscal risks tied to Prime Minister Burnham’s initial policy plans and an oil price shock.
Bank of England Outlook
A Bloomberg poll, alongside UOB’s call, points to the Bank of England holding rates at 3.75%, with some upside risk of additional tightening but no near-term change framed by softer demand and signs of a loosening labour market.
