The British pound rose to a 1-week high on Monday as Trump’s remark ignited hope of energy supply normalisation. He has more than 30 times claimed a peace deal is close to completion throughout the war.

Iran's media reported that a draft deal includes a commitment from the US to lift oil sanctions and that final negotiations will not begin until half of Iran's frozen funds are released.

The UK, France, Germany and Italy announced they were prepared to lift relevant sanctions in response to “clear and verifiable steps taken by Iran regarding its nuclear program.”

The UK's economy shrank by 0.1% in April as the war began to have an impact on businesses, official data has indicated. EBC Financial Group analyst expects the BOE to keep interest rates unchanged this week.

Consumer spending showed tentative signs of recovery in May, returning to growth for the first time in two months. Meanwhile, consumer sentiment showed signs of stabilisation.

Philip Rycroft, who was permanent secretary of the Department for Exiting the EU, said there was a compelling case for rejoining the EU, adding it was time for a sensible national debate on Britain’s best interests.

The pound saw a series of higher local lows, building a short-term corrective uptrend. The MACD confirmed a steady loss of selling pressure, so a rally towards the 50 SMA looks very likely.

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