Sterling Holds Ground as Traders Weigh Geopolitical and Rate Risks

Uncertainty lingers around the U.S.-Iran deal, as the absence of specific details leaves shippers skeptical about a swift return to regular operations. Oil prices softened on the news, yet the currency markets showed little volatility, reflecting a market waiting for more concrete evidence of stability before shifting positions.

Attention now pivots to Wednesday’s inflation data, with analysts projecting a 3% annual rate. This release, coupled with looming labor market and retail sales figures, will provide the backdrop for Thursday’s Bank of England interest rate decision, where officials are widely expected to hold current levels. Adding a layer of domestic political intrigue, Greater Manchester Mayor Andy Burnham’s involvement in the Makerfield by-election has emerged as a secondary factor that could influence sentiment toward Sterling later this week.