Pound Steady Near Four-Week Lows as Investors Await Fed and BoE Decisions

The British pound held steady near four-week lows against the dollar on Wednesday as investors focused on the Federal Reserve's monetary policy decision, despite escalating tensions in the Middle East.

Oil prices surged over 4% after a fresh escalation in hostilities, including US and Saudi strikes in Iraq and an intercepted Iranian missile attack on US forces.

Market participants remained cautious ahead of key central bank decisions this week, including the Bank of England's policy decision on Thursday, which is widely expected to keep interest rates steady.

Expert opinions suggest that neither current oil prices nor recent economic data warrant a hasty response from the Monetary Policy Committee (MPC), with one analyst stating, 'On the surface, the renewed hostilities in the Middle East give real ammunition to the hawkish faction of the MPC.'