Sterling Hits One-Month High vs Dollar Amid Economic Data Anticipation

Sterling reached its highest level against the dollar in nearly a month, hovering around $1.3510 as investors await key economic data releases from Britain and the US.

Renewed tensions in the Middle East contributed to the dollar's upward tick, with markets anticipating fresh signals on the Federal Reserve's policy trajectory.

Gilt yields remained elevated near multi-decade highs due to fiscal uncertainty, keeping term premiums high.

According to Jane Foley, senior strategist at Rabobank, 'Higher for longer oil prices may force the BoE to increase its tough talk against inflation,' but this could be countered by similar policies from other central banks.