Pound Stabilizes Above $1.34 Amid Easing US-Iran Tensions

The British pound has maintained its value above $1.34 as market sentiment improves due to easing tensions between the US and Iran.

Qatar's mediators reported progress in negotiations, while US Treasury Secretary Scott Bessent said a deal to reopen the Strait of Hormuz could be reached by Tuesday or Wednesday.

The Bank of England's recent meeting reinforced expectations that policymakers are not in a hurry to tighten monetary policy, leading markets to reduce bets on interest rate hikes in 2026.

The BoE voted 6-3 to keep rates unchanged, with three members backing a hike versus the expected 7-2 split. Governor Andrew Bailey downplayed the prospect of imminent tightening, stating that the disinflation process remains on track.