Sterling rises versus dollar as market sentiment brightens
SPY•Sterling rose just over 0.5% to $1.3421 as concerns over AI stocks eased and oil prices fell. UK third-quarter GDP data is due later this week; economists surveyed expect 0.7% growth.
1. Sterling gains
The pound rose against the dollar on Monday, reversing most of Friday’s decline as demand for safe-haven assets cooled. Sterling was last up just over 0.5% at $1.3421, after falling more than 0.7% on Friday. It was steady at 83.41 pence per euro, near last week’s 20-month high.
2. Oil and GDP outlook
Brent crude fell 3.2% to $95.16 a barrel after Donald Trump downplayed the likelihood of renewed strikes on Iran, though attacks on ships near the Strait of Hormuz kept supply concerns in focus. UK third-quarter GDP data is due later this week; a survey of economists expects 0.7% growth, up from the previous period. Deutsche Bank economists said stronger productivity, capital spending and consumer activity had supported growth, but warned the energy shock would likely squeeze household disposable incomes.
