Pound Rebounds on Easing Tensions, Brent Crude Retreats

The pound has rebounded to $1.334 after hitting a three-week low last week, as easing tensions between the US and Iran and a decline in oil prices boosted risk sentiment.

Brent crude retreated from its two-month highs following Washington and Tehran's decision to pause hostilities and resume diplomatic contacts.

This helped ease inflation concerns, prompting money markets to scale back expectations for policy tightening. The UK's consumer price growth slowed to a 15-month low of 2.6% in June, below the Bank of England's forecasts.