Pound Steadies Amid Geopolitical Tensions and Weak US Data
The British Pound has steadied its value in recent trading sessions as tensions escalate in the Middle East. The geopolitical situation between Iran and the US has taken center stage, with President Donald Trump stating that no talks are ongoing with Iran and the Strait of Hormuz remaining open.
US data released earlier this week showed weakness in housing starts and industrial production. Housing starts fell 12.4% month-over-month in July due to higher mortgage rates and elevated home prices. Industrial production also missed estimates, decelerating from 0.3% to 0.2% month-over-month.
Meanwhile, the UK's unemployment rate exceeded estimates at 4.8%, with jobs data revealing weakness. The Bank of England is expected to keep interest rates unchanged at its upcoming meeting on September 17, with odds currently at 72%.