GBP Surges to Highest Level Since August on Rate Hike Bets

The pound strengthened to its highest level since August 29, despite rising oil prices and escalating Middle East tensions.

This increase in value is largely due to investors reassessing the Bank of England's monetary policy outlook, with markets pricing in at least two rate hikes by March next year.

In contrast, investors expect only two Federal Reserve rate hikes over the same period, highlighting a divergence in expectations between the UK and US economies.