Pound Defies Yields Surge Amid UK Tightening Expectations
The British Pound has defied the surge in US Treasury yields, registering modest gains of 0.18% against the US Dollar. The GBP/USD trades at 1.3252, despite the US 10-year T-note rising over 10 basis points.
US President Donald Trump's decision to decline Iran's proposal to reopen the Strait of Hormuz and bring an end to the Middle East conflict has pushed oil prices higher, with West Texas Intermediate (WTI) up more than 3% at $95.41 per barrel.
The Bank of England's (BoE) potential for further tightening is also boosting Sterling, as investors see rising energy prices in the UK as a reason to expect interest rates to increase. BoE Deputy Governor Dave Ramsden commented that if upside inflation pressures build, it could be grounds for raising rates.