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Pound holds above 1.3400 as cable trades near 1.3450
Sterling is also supported by a firmer July services and manufacturing backdrop, after the Bank of England held Bank Rate at 3.75% and a two-year gilt yield fell about 7 basis points.
The British pound was steady against the US dollar on Tuesday, trading near 1.3450 and up 0.11% within a roughly 36 pip session range, with cable holding above the 1.3400 level that capped it through late July. FXStreet said the pair has now posted its second sub-40-pip day within a week, though it remains contained within an overall envelope of barely 80 pips over the past three sessions.
While the move has a “Sterling” look on the chart, FXStreet noted that cross-rate checks point to broader drivers. The pound was nearly flat versus the euro, slightly higher versus the Swiss franc, and lagged against both the Australian dollar and the New Zealand dollar, a performance profile FXStreet links to a currency being carried rather than moving on its own strength.
FXStreet attributed Tuesday’s action to a dollar-led session tied to a risk-on tone and relative moves in high-beta commodity currencies. It also cited expectations tied to the prospect of the Strait of Hormuz reopening.
On the domestic front, FXStreet pointed to a July flash services survey coming in at 51.8 versus 49.4 expected, with the composite at 52.1 versus 49.7 and manufacturing output reported at a 22-month high. It added that the Bank of England held Bank Rate at 3.75% on 30 July, with a hawkish minority voting for a quarter-point rise, and said the two-year gilt yield fell about 7 basis points to around 4.38% after the governor pushed back on near-term hike expectations.