Sterling Recovers from Three-Month Low

2026-03-17 09:41 By Joana Ferreira 1 min. read

The British pound steadied above $1.33, seeking to recover from a recent steep decline that pushed sterling to a three-month low.

Market attention remains fixed on escalating Middle East tensions and their potential influence on the Bank of England’s policy stance, as the central bank prepares for its upcoming decision this week.

US President Donald Trump suggested that military operations in Iran would extend beyond this week, while Israeli officials warned on Monday that the conflict could drag on for “several more long weeks.” The resulting surge in energy prices has led traders to assign a roughly 50% probability to a Bank of England interest rate hike in November, a notable shift from early March, when markets anticipated two rate cuts this year.

For this week’s meeting, analysts will scrutinize the vote split among policymakers, with expectations centered on a 7-2 or 6-3 decision to maintain current rates.



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Sterling Recovers from Three-Month Low
The British pound steadied above $1.33, seeking to recover from a recent steep decline that pushed sterling to a three-month low. Market attention remains fixed on escalating Middle East tensions and their potential influence on the Bank of England’s policy stance, as the central bank prepares for its upcoming decision this week. US President Donald Trump suggested that military operations in Iran would extend beyond this week, while Israeli officials warned on Monday that the conflict could drag on for “several more long weeks.” The resulting surge in energy prices has led traders to assign a roughly 50% probability to a Bank of England interest rate hike in November, a notable shift from early March, when markets anticipated two rate cuts this year. For this week’s meeting, analysts will scrutinize the vote split among policymakers, with expectations centered on a 7-2 or 6-3 decision to maintain current rates.
2026-03-17
Pound Eyes Recovery Above $1.32
The British pound traded just above $1.32, attempting to rebound from a recent sharp slide that sent sterling to its weakest level in three months. Investors are closely monitoring ongoing tensions in the Middle East and the potential impact on the Bank of England’s policy outlook ahead of this week’s decision. Israeli officials warned the war could last “several more long weeks,” while US President Donald Trump said Iran is “not ready” to reach a deal. The spike in energy prices has prompted traders to adjust their expectations for interest rates, with markets now pricing in roughly 23 basis points of a hike for December, just shy of a quarter-point increase. This marks a sharp reversal from early March, when investors were expecting the BOE to cut rates twice this year. For the March meeting, attention will focus on the vote split, with a 7-2 or 6-3 decision to hold rates seen as the most likely outcome.
2026-03-16
British Pound Hits 14-week Low
GBPUSD decreased to 1.33, the lowest since December 2025. Over the past 4 weeks, British Pound US Dollar lost 2.77%, and in the last 12 months, it increased 2.49%.
2026-03-13