GBP/USD Surges to Mid-July Highs Amid Weakening Dollar and Falling Oil Prices

The GBP/USD currency pair has started the week on a strong note, reaching its highest level since mid-July. This upward momentum is largely due to the weakening of the US dollar following a soft labour market report and declining oil prices.

Falling oil prices have eased inflation concerns and reduced expectations of aggressive Federal Reserve tightening. Furthermore, progress in negotiations between Iran and Oman regarding the Strait of Hormuz has supported risk sentiment.

The Bank of England's monetary policy approach will be closely watched this week, with Thursday's preliminary GDP estimate for the second quarter being a key event. A stronger-than-expected data release would support the pound, while a marked slowdown could put pressure on it.