Pound Steadies Near $1.3500 Amid UK Inflation Relief and Hormuz Tensions

The British pound has stabilized near the 1.3500 level against the US dollar as of early trading, thanks to a lower-than-expected UK inflation reading. However, rising geopolitical tensions in the Strait of Hormuz have limited its upside.

The Consumer Price Index (CPI) data released on [Date] showed that UK inflation eased more than analysts had forecast, providing some relief to the Bank of England and supporting the pound. The annual CPI rate came in at [X]%, down from [Y]% in the previous month, driven by lower energy costs and a slowdown in food price increases.

This softer inflation print has led markets to scale back expectations of further aggressive rate hikes, which in turn has offered a modest tailwind for the currency. However, the Bank of England has remained cautious, noting that underlying price pressures, particularly in the services sector, remain elevated.