Bank of Tokyo-Mitsubishi UFJ: Pound faces the risk of a reversal and decline.

Mitsubishi UFJ Banking Corporation's Derek Halpenny stated in a report that the steady performance of the British pound in the coming weeks faces the possibility of a reversal. He said that during the Iran war, the pound performed better than expected, partly due to market expectations of interest rate hikes driving short-term yields higher. After U.S. President Trump announced a two-week ceasefire, yields have fallen slightly. However, Halpenny said that oil and fuel prices may remain high, which could impact economic growth, keeping yields at levels above those before the conflict. Data from the London Stock Exchange Group shows that the pound rose by 0.9% to $1.3421, reaching a two-week high of $1.3445 earlier. The euro fell by 0.2% against the pound to 0.8699, after hitting a one-week low of 0.8691.