Pound Holds Steady Amid Middle East Uncertainty

The British pound has stabilized around $1.34 as investors remain cautious and await greater clarity on the Middle East peace process.

This comes after US President Donald Trump called off planned strikes on Iran, indicating that a diplomatic resolution to the conflict is still possible, despite uncertainty persisting after Tehran denied any ongoing or planned negotiations.

The recent Bank of England meeting reinforced expectations that policymakers are in no rush to tighten monetary policy, prompting markets to scale back bets on interest rate hikes in 2026.

The BoE voted 6-3 to keep interest rates unchanged, with three members favoring a hike versus expectations for a 7-2 split.