GBP/USD Holds Near Highs as US Treasury Announces Bond Buyback

The GBP/USD currency pair has been holding steady at around 1.3627 on Tuesday, maintaining its position near multi-month highs.

This comes as a result of the US Treasury's decision to double its purchases of long-term government bonds, which has led to dollar weakness and supported sterling.

The UK economy is also showing signs of improvement, with strong domestic data pointing to a pickup in business activity and consumer confidence climbing to a two-year high in August.

However, the key risk remains high inflation, potentially fueled by a protracted conflict with Iran and elevated energy prices.