The British pound fell to $1.35, hovering near a two-week low, as investors moved away from riskier assets amid concerns over the economic impact of the energy shock triggered by renewed hostilities in the Middle East. Meanwhile, investors digested Prime Minister Andy Burnham’s speech to the House of Commons, in which he reaffirmed the government’s commitment to fiscal responsibility and reducing debt, while saying the early budget date was intended to curb speculation. Chancellor John Healey is expected to deliver his first major speech in the role as soon as next week. Markets continue to price in a 25-basis-point BoE rate hike by year-end, with expectations reinforced by accelerating UK shop-price inflation. In the US, markets are pricing in a 66% probability of a September Fed hike following hawkish remarks from Fed Chair Kevin Warsh and higher oil prices.