GBP Retreats on Hormuz Fears as USD Buoys

The British Pound (GBP) has retreated from its multi-week high as concerns about the Strait of Hormuz and potential disruptions to oil supplies continue to weigh on the US Dollar (USD).

Despite a soft US jobs report, which showed a loss of 23K jobs in July, the USD has been buoyed by persistent uncertainty surrounding the Middle East crisis.

This has limited the GBP/USD pair's upside potential, with traders pricing in a less than 45% chance of a US Federal Reserve rate hike in September, down from 67% just a week ago.

The upcoming release of US inflation figures and UK Q2 GDP data will be closely watched by investors, who are also keeping an eye on the Strait of Hormuz situation for any developments that could impact oil prices and the USD.