Sterling Strength Selective as Dollar and Oil Markets Stabilize

The Pound Sterling has opened the new week on a firmer note against the US Dollar and Japanese Yen, but its overall strength remains selective rather than broad-based.

The main driver of global markets is still the US Dollar's post-payrolls reset. Last Friday's weak US labor market release tempered expectations for a September Federal Reserve rate increase, leaving traders waiting to see if Wednesday's US CPI figures will solidify or reverse the Dollar's recent setback.

Oil prices have also calmed down from their peak levels during the Strait of Hormuz shock, with Brent crude trading near $83.50 as Iran and Oman move closer to an agreement on shipping lanes. However, full access to the waterway remains tied to wider US-Iran conditions.