GBP Finds Footing at 1.3420 as Markets Eye US Job Openings Data

The British Pound (GBP) has found support at 1.3420 against the US Dollar (USD), but its rally is being held back by lingering uncertainty and a lack of clear policy backing from the Bank of England.

Market sentiment has improved following news that a tense calm holds in Iran, with contradictory versions emerging about talks between the US and Iranian authorities. This has led to hopes that the US and Iran may reach an agreement to restore shipping through the Strait of Hormuz, which would reduce inflation risks and the likelihood of further rate hikes.

The Pound's lack of clear policy backing is evident in its net shorts, which bounced higher last week ahead of the BoE policy meeting. Despite a more hawkish voting split than expected from the MPC, Governor Bailey's tone was dovish, suggesting little support for the pound from the Bank of England.