Sterling held near $1.35, slightly below last week’s three-week peak, as political uncertainty and geopolitical risks dominated markets. Former Foreign Office chief Olly Robbins testified over Peter Mandelson’s contested US ambassador appointment, a scandal that could threaten PM Keir Starmer if Robbins confirms Starmer was aware of failed security checks. Meanwhile, US President Donald Trump confirmed that the two-week ceasefire between Washington and Tehran is due to expire on Wednesday evening, while US Vice President JD Vance and an Iranian delegation are expected to arrive in Pakistan later today for peace talks. On the economic front, UK unemployment fell to 4.9% in the three months to February 2026, down from 5.2% the previous month and surpassing market expectations. Wage growth, including bonuses, slowed to 3.8%, and to 3.6% excluding bonuses, both marginally above forecasts. UK payrolls dropped by 11,000 in March, reflecting economic strain from the conflict.