The British pound was broadly steady, trading just above $1.35, as investors looked ahead to UK Chancellor John Healey’s first major policy speech on Monday, ahead of next month’s budget announcement. Oil prices edged closer to seven-week highs after the US struck three Iranian oil tankers over the weekend, destroying one, while Tehran threatened to establish a new restricted zone outside the Strait of Hormuz. The recent rise in oil prices has been a major driver of the global bond selloff, leaving UK gilts particularly exposed.
On the data front, UK firms increased full-time hiring in August for the first time in four years, according to a closely watched REC survey. The figures will be scrutinized by Bank of England policymakers as they gauge the resilience of the labor market. At the same time, UK house prices fell year-on-year for the first time since November 2023, according to data from Lloyds.
