GBP/USD rose after Israel and Lebanon agreed to extend a ceasefire and Trump
said the US and Iran could reach a deal by the weekend. A Monex Europe analyst
said those gains are unlikely to persist. Headwinds for sterling include the
ongoing closure of the Strait of Hormuz and its trade impact, a cooling UK
labor market, softer inflation prints, and the risk of a leadership challenge
to Prime Minister Starmer. The analyst said Friday’s Bank of England
policymaker-panel survey and US nonfarm payrolls could reinforce downside
pressure on the pound.