Nothing Britain does moves the Pound against the Dollar

The Pound Sterling is currently trading around 1.3450 against the US Dollar, up by 0.11% during the session that saw a 36 pip range. It has been above the 1.3400 level since late July and above its moving average band, though the recent moves have been within a narrow 80 pip envelope. In terms of cross rates, the Pound is flat against the Euro and slightly ahead versus the Swiss Franc, Australian Dollar, and New Zealand Dollar, indicating it is being carried rather than leading the market.

The Dollar lost value against several major currencies while gaining against the Canadian Yen, reflecting a risk-on session rather than broad Dollar weakness. The Pound's gains came from high-beta commodity currencies, driven by an equity rally and the potential reopening of the Strait of Hormuz. There was little domestic catalyst for the Pound's performance over the past two weeks; the latest flash services survey showed a reading of 51.8, above expectations and the expansion line, though the Bank of England held base rates at 3.75% with only three dissenting votes. Monetary policy, particularly interest rate decisions, is the primary driver of the Pound's value.