empty
 
 

2026.07.1413:15:15UTC+00Pound Rises on UK Political Shift, Rate Hikes Bets

The pound climbed to $1.34, returning to levels last seen in mid-June, as investors refocused on UK politics. Attention has shifted to Andy Burnham, who is set to succeed Keir Starmer as prime minister on July 20, and to his choice of finance minister. Betting markets currently favor Ed Miliband for the role, and he is widely regarded as inclined toward more expansionary fiscal policy. Investors also monitored intensifying tensions in the Middle East, rising oil prices, and mounting inflation risks. The US military continued strikes against Iran after President Donald Trump reinstated a blockade on Iranian shipping and proposed a 20% fee to secure passage through the Strait of Hormuz, amplifying uncertainty over global energy supplies. In response, markets increased expectations for further Bank of England rate hikes, now almost fully pricing in two increases in 2026 and fully pricing in a September move. In the US, softer June inflation data eased pressure on the Federal Reserve to raise rates, although Governor Christopher Waller cautioned that further tightening remains possible if inflation stays above the 2% target.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $4000 more!
    In July we raffle $4000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback