- GBP/USD steadies as the US Dollar holds firm amid ongoing uncertainty over efforts to end the Iran war.
- Iranian officials are reviewing the US proposal but signaled no willingness to engage in talks with Washington.
- UOB economist highlighted a hawkish BoE shift, holding the Bank Rate at 3.75% after a 9–0 vote.
GBP/USD remains flat after two days of losses, hovering around 1.3360 during the Asian trading hours on Thursday. The pair remains steady as the US Dollar (USD) holds firm, with traders closely tracking developments in the Middle East amid persistent uncertainty over efforts to end the Iran war.
The White House stated that talks are ongoing, with the Trump administration reportedly sending a 15-point proposal to Iran via Pakistan to resolve the conflict. Senior Iranian officials are reviewing the US proposal but have signaled no willingness to engage in talks with Washington. However, Tehran indicated it would reject a US ceasefire offer, instead putting forward a five-point plan that includes sovereign control over the Strait of Hormuz.
The Pound Sterling (GBP) may find support from easing oil prices amid hopes of de-escalating Middle East tensions. UK inflation data for February showed headline CPI steady at 3%, in line with expectations, while core CPI edged higher to 3.2%, surpassing the 3.1% forecast. However, these pre-conflict figures had a limited impact on market sentiment.
UOB economist Lee Sue Ann pointed to a hawkish shift by the Bank of England (BoE), with the Bank Rate held at 3.75% following a unanimous 9–0 vote. The report removes earlier expectations for three rate cuts in 2026, now projecting the GBP Repo Rate to remain at 3.75% through the fourth quarter of 2026 as inflation risks persist.
