The pound dipped on Monday as the intensifying ‌war in the Gulf dampened sentiment sent oil prices soaring. US core CPI for August topped forecasts, bolstering the case for rate hikes.

Iranian President Masoud Pezeshkian declared at the BRICS Summit in New Delhi on Friday that his nation will never capitulate, emphasizing its ongoing resistance against American and Israeli aggression.

After sustaining drone attacks launched from Iraq, Saudi Arabia announced it has closed its East-West crude oil pipeline—a critical transit facility used to bypass the Strait of Hormuz.

Britain's GDP expanded by a much stronger-than-expected 0.4% in July, extending its robust performance from the first half of the year despite persistent economic headwinds.

The economy grew by 1% in the first half of 2026, the fastest growth across the G7 nations, though some analysts attribute this pace to unadjusted seasonal effects.

Following PM Andy Burnham taking over from his Labour predecessor Keir Starmer, both consumer confidence metrics and business activity strengthened over the summer.

EBC Financial Group analyst says that sterling was testing a support zone marked by the baseline around $1.3505. Since late August, the pair has been range-bound, with the risk skewed towards the upside.

Asset Recap

As of market close on 11 September, among EBC major products, Quanta Services shares led gains due to continuing confidence in the company’s power and communications infrastructure story.

Oil prices were down after the Financial Times reported that foreign ministers in the Middle East are trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz.

Attracted by AI-driven technology shares following a steep July downturn and solid corporate earnings, foreign investors pivoted back to net buying Asian equities in August, snapping a nine-month selling streak.

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Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.