GBP/USD Sees Slight Gain Amid Fiscal and Oil Price Uncertainty

The British Pound (GBP/USD) has seen a slight increase to 1.3326, as investors weigh the risks associated with Prime Minister Burnham's debut fiscal plans and the oil price shock. According to a Bloomberg poll of seven analysts, all respondents expect the Bank of England (BoE) to keep interest rates at 3.75%, with economist Lee Sue Ann sharing this view.

While there are modest upside risks for further tightening, any move is unlikely to be imminent without a renewed shock in energy prices. Energy price volatility and elevated services inflation continue to pose risks, but softer domestic demand and a loosening labour market should keep the BoE on hold for now.