ING: If the Bank of England suppresses rate hike expectations and political concerns intensify, the pound may fall

(1) Chris Turner, an analyst at ING, stated that if the Bank of England dampens rate hike expectations and political concerns in the UK intensify, the pound could decline. (2) After a temporary peace agreement was reached between the US and Iran, energy prices fell, which may weaken the Bank of England's need to raise interest rates. Bank of England Governor Bailey is expected to "act cautiously" at the Thursday meeting and maintain interest rates unchanged. (3) If Andy Burnham wins the special election on Thursday, it could trigger a leadership challenge to Prime Minister Starmer. GBP/USD rose 0.2% to 1.3428, while EUR/GBP increased 0.2% to 0.8641.