GBP/USD Holds Near Highs Amid Dollar Weakness and Geopolitical Tensions

The GBP/USD currency pair has been holding steady near its highest level since mid-February at around 1.3627 on Tuesday.

This comes as a result of dollar weakness following the US Treasury's decision to at least double its purchases of long-term government bonds, and strong UK economic data.

The pair is also being supported by upcoming events such as new sanctions against Iran and Fed Chair Kevin Warsh's speech at Jackson Hole on Friday, which could shape expectations for US interest rates.

In the UK, money markets are pricing in one Bank of England rate hike before year-end and a further 25-basis-point move by early 2027, based on accelerating inflation and improving business activity and consumer confidence data.