Sterling rebounds 0.5% to $1.3421 as dollar safe-haven demand cools

The pound rose 0.5% to $1.3421 on Monday, November 9, recovering most of Friday's 0.7% drop as concerns over AI stocks eased and demand for safe-haven assets like the dollar cooled.

Sterling was last up just over 0.5% at $1.3421. It had fallen more than 0.7% on Friday. The pound was steady at 83.41 pence per euro, not far from last week's 20-month high.

Dollar demand cools as AI stock fears ease

The more positive market backdrop reduced demand for the dollar, which had benefited at the end of last week from concerns over AI stocks. The pound's recovery came as oil prices also fell.

Brent crude drops 3.2% to $95.16

Brent crude futures fell 3.2% to $95.16 a barrel after US President Donald Trump downplayed the likelihood of renewed strikes on Iran. Supply concerns remained in focus, however, because of attacks on ships near the Strait of Hormuz.

The pound had reached a 20-month high last week after the Bank of England raised interest rates and hinted that additional tightening is likely unless the Iran war de-escalates and pushes oil prices lower.

UK third-quarter GDP expected at 0.7%

UK third-quarter GDP is expected to show 0.7% growth. The expansion is supported by AI spending, defence investment and consumer activity, despite ongoing energy price pressures.