Sterling Holds Steady Amid Hormuz Deal Hopes

The British pound remains steady against both the euro and dollar as investors await updates on a potential deal between Iran and Oman to reopen the Strait of Hormuz.

Global markets are closely watching events in the Middle East, with expectations rising that a deal could be close to reopening the strait, a critical passage for global oil shipments.

Francesco Pesole, FX strategist at ING, said 'there was a clear intention from the latest de-escalation not to create too prolonged disruption in the Strait of Hormuz.'

The Bank of England kept interest rates on hold last week, citing the need for more data on how Middle East tensions might influence inflation. Investors are now pricing in about 23 basis points of tightening by the end of the year.