British Pound Hits 4-week High

GBPUSD increased to 1.35, the highest since July 2026. Over the past 4 weeks, British Pound US Dollar gained 0.02%, and in the last 12 months, it decreased 0.02%.

The British pound eased below $1.35, as investors balanced resilient UK economic data against persistent geopolitical uncertainty in the Middle East. UK GDP expanded 0.4% quarter-on-quarter in the second quarter, matching economists’ expectations and following 0.6% growth in the first quarter. June activity was stronger than anticipated, with monthly GDP rising 0.3%. However, household consumption growth slowed to 0.2%, highlighting continued pressure on consumers. Meanwhile, negotiations aimed at ending the US-Iran conflict and reopening the Strait of Hormuz remained stalled, with shipping disruptions and attacks continuing to weigh on sentiment. The Bank of England left interest rates unchanged in July, with Governor Andrew Bailey saying disinflation remained on track despite persistent external risks.

The British pound traded around $1.349, remaining close to its highest level since July 15, as investors assessed mixed signals surrounding US-Iran negotiations and the prospects for reopening the Strait of Hormuz. Iran’s Foreign Minister Abbas Araghchi said an agreement with Oman to establish a shipping route through the strait was “very close,” but ruled out direct talks with the US for now and cautioned that any deal would not immediately restore shipping. In the meantime, last week’s surprise contraction in US employment reduced expectations of a near-term Federal Reserve rate hike. In the UK, the Bank of England left rates unchanged in July, with Governor Andrew Bailey saying disinflation remained on track. UK labour-market data from KPMG and REC showed some improvement, with permanent hiring stabilising and temporary vacancies rising for the first time in two years. However, starting salary growth accelerated to a six-month high, although it remained below its long-term trend.