The Pound Sterling advances during the North American session, up 0.20% as markets digest developments in the Middle East and await crucial inflation data in the United States (US).
The GBP/USD trades at 1.3520 after bouncing off daily lows of 1.3483
GBP/USD advances despite a firmer Dollar as Oil jumps, Fed-BoE bets shift, and inflation data looms Negotiations between Oman and Iran have continued but have so far failed to provide relief for financial markets, as evidenced by rising Oil prices, with West Texas Intermediate (WTI) rising over 4.50% to $80.69 per barrel. In the meantime, the US Dollar Index (DXY), which tracks the value of six currencies versus the American dollar, is up 0.13% at 99.73. Geopolitics and its impact on energy prices continued to drive market mood, with investors attentive to the reopening of the Strait of Hormuz.
Data on both sides of the Atlantic remains scarce, but it will gather pace on Tuesday. The UK economic docket will feature the BRC Like-For-Like Retail Sales for July, which are projected to dip from 1.7% to 1.5% YoY. On Thursday, traders will eye the release of the Gross Domestic Product (GDP) figures on August 13, which are expected to show that the economy held firm.