Sterling Rebounds as Markets Await UK GDP
Sterling recovered above the $1.34 level, attempting to claw back last week's losses as falling oil prices eased market concerns and investors awaited key economic data due later this week. Brent crude fell below $97 a barrel after US President Donald Trump said it was “highly unlikely” he would authorize further strikes on Iran if negotiations over its nuclear programme and the reopening of the Strait of Hormuz made significant progress. Meanwhile, investors are looking ahead to the UK's third-quarter GDP report on Thursday, which is expected to show economic growth of a solid 0.7%, supported by strong services output. Elevated UK government bond yields and expectations of further Bank of England rate hikes are also helping underpin sterling's appeal. Across the Atlantic, attention will turn to Tuesday's US CPI report, which could provide further clues about the Federal Reserve's monetary policy outlook and the timing of potential interest rate hikes.
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Sterling recovered above the $1.34 level, attempting to claw back last week's losses as falling oil prices eased market concerns and investors awaited key economic data due later this week. Brent crude fell below $97 a barrel after US President Donald Trump said it was “highly unlikely” he would authorize further strikes on Iran if negotiations over its nuclear programme and the reopening of the Strait of Hormuz made significant progress. Meanwhile, investors are looking ahead to the UK's third-quarter GDP report on Thursday, which is expected to show economic growth of a solid 0.7%, supported by strong services output.
Elevated UK government bond yields and expectations of further Bank of England rate hikes are also helping underpin sterling's appeal. Across the Atlantic, attention will turn to Tuesday's US CPI report, which could provide further clues about the Federal Reserve's monetary policy outlook and the timing of potential interest rate hikes.