Pound Unfazed by Geopolitics Ahead of US Jobs Data

The British pound has maintained its stability ahead of the release of US employment data on Friday. The sterling was last trading at $1.3525, showing minimal fluctuations despite Thursday's 0.3% gain.

The Bank of England Chief Economist Huw Pill suggested that raising interest rates now could help reduce the central bank's need to be more aggressive in future to combat inflation, which has risen due to the Iran war.

However, BBVA strategists remain skeptical about the BoE's hawkish stance, citing soft UK labor market conditions and complex fiscal situations. They are mildly bearish on the pound but expect a potential boost from new energy price surges that could prompt policy recalibration.