GBP/USD Rallies on Cheaper Oil and Weakened Hike Bets
The British pound (GBP/USD) rose to $1.3330 on Monday, up 0.07% from Thursday's three-week lows, as cheaper oil improved the UK growth outlook.
The pair has been stuck in a narrow range since July 10, when it reached a fresh one-year high of $1.343. It retreated to $1.3379 on July 22 and lost 1.20% over four sessions last week before recovering two sessions.
The recent floor is $1.3165 from June 24, about 1.25% below the current price. What's notable is that sterling rose despite investors scaling back Bank of England rate-hike bets, which would normally be pound-negative.
Brent crude oil fell as much as 7.4% on Monday to trade between $87 and $92, easing worries about energy-driven inflation and tempering expectations for further tightening ahead of Thursday's policy meeting.