Pound Holds Near Six-Month Highs Amid US Debt Concerns

The British Pound (GBP) holds its ground against the US Dollar (USD), as concerns about the US Treasury's bond buyback plans continue to cap the Greenback's rally. The GBP/USD pair is trading near six-month highs, just below 1.3675, after a calm Monday session in London.

The mixed UK data released on Friday showed retail consumption rose below expectations in July, but services and manufacturing activity data beat forecasts in August, providing some support to the Pound.

Meanwhile, US Treasury Secretary Scott Bessent vowed to unleash an 'economic D-Day' for Iran, which could potentially impact the Dollar's value. Strategists at Scotiabank remain bullish on the Pound, predicting a sustained push above 1.3650/60 could lead to a potential extension towards the 1.41 zone over the balance of the year.