The British pound extended its advance above $1.34, reaching its strongest level so far this month and moving further away from the three-month lows touched recently, supported by a modest improvement in overall market sentiment and by investors scaling back expectations for interest-rate cuts by the Bank of England in 2026. Oil prices remained below $90 per barrel after the International Energy Agency proposed a record release of strategic oil reserves aimed at countering the sharp rise in energy prices since the start of the Iran conflict. The move helped ease some inflation concerns that had recently weighed on markets. On the monetary policy front, money markets are now pricing in only minimal easing this year, a notable shift from before the conflict when around two rate cuts had been anticipated. Investors are also looking ahead to upcoming UK economic data, with monthly GDP figures due on Friday.
