Pound Holds Near Six-Month High Amid Rate Hike Expectations

The British pound is holding strong near its six-month high of $1.36 due to ongoing expectations of a Bank of England rate hike this year.

This comes despite easing oil prices, with Brent crude falling for a third straight session after Iran held talks with Oman on reopening the Strait of Hormuz.

The UK's inflation rate accelerated to 2.9% in July, its highest level since March, and markets are pricing in at least 25 bps of BoE tightening by year-end.