Pound steadies on Hormuz talks
The exchange rate of the British pound against the dollar and the euro remained stable amid market anticipation of potential developments in an agreement between Iran and Oman regarding the reopening of the Strait of Hormuz. This strait is a key point in obstructing efforts to resolve the conflict between the United States and Iran. Experts pointed out that steps to de-escalate suggest an intention to avoid prolonged disruption of navigation, which supports currency stability. Market forecasts indicate a possible tightening of British monetary policy by 23 basis points by the end of the year, although some analysts consider these expectations exaggerated and caution that such a move could pressure the pound, especially against the euro, if the Bank of England does not implement an interest rate increase. Additionally, a survey of the UK construction sector showed that the contraction slowed in July, with the Purchasing Managers' Index rising to 44.7 points, though the market remains cautious about ongoing economic challenges.
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