GBP Slips Ahead of BoE Decision Amid Ongoing Middle East Tensions

The Pound (GBP) slipped on Monday as investors looked ahead to Thursday's Bank of England (BoE) interest rate decision.

The US Dollar initially weakened as the US and Iran paused attacks for a third consecutive night, raising hopes that a fresh ceasefire agreement and renewed diplomatic efforts could emerge.

However, USD later recovered some ground after reports that Yemen's Iran-backed Houthi militia had launched drone attacks on Saudi oil transport infrastructure, keeping tensions in the Middle East elevated.

The Pound to US Dollar (GBP/USD) exchange rate was trading around $1.3311, down approximately 0.1% on the day.