June British Pound futures gained for a second consecutive session, overcoming early weakness seen during the European session. The rebound occurred despite dovish comments from Bank of England Governor Andrew Bailey, who indicated the central bank could tolerate temporary inflation above target to sustain the weak domestic economy while pushing back against near-term interest rate hike pricing. Additionally, the currency continues to function as a risk-on asset heavily impacted by Middle East ceasefire developments. Market participants remain focused on fluctuating geopolitical headlines near the strait and potential memorandum updates, which continue to create a volatile trading environment for the pound.
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