Pound Sterling scales higher as USD weakens amid renewed US-Iran peace deal hopes
The GBP/USD pair attracts buyers for the second consecutive day on Wednesday and moves away from the weekly low, around the 1.3515-1.3510 area, which was touched the previous day. The optimism over a potential US-Iran peace deal undermines the safe-haven US Dollar (USD) and lifts spot prices to the 1.3580 region during the Asian session.
US President Donald Trump said that ‘Project Freedom’ – aimed at restoring commercial shipping traffic through the Strait of Hormuz – will be paused for a short period of time to see if the Iran peace deal can be finalised. This comes hours after US Defense Secretary Pete Hegseth said that the US-Iran ceasefire holds for now and that the US was not seeking to re-escalate tensions with Tehran. The comments lift hopes for a quick resolution of the US-Iran conflict and boost investors’ confidence, prompting some selling around the USD and providing a goodish lift to the GBP/USD pair. Read more…
GBP/USD stalls as US Dollar drivers dominate a quiet UK week
GBP/USD ended Tuesday near where it started, settling close to 1.3545 after a narrow session capped by resistance around 1.3550. Price has held a roughly 60-pip range across the past two sessions, with overlapping wicks pointing to a market lacking conviction in either direction.
With the UK economic calendar quiet through to the weekend, GBP/USD direction over the coming sessions will hinge almost entirely on US Dollar dynamics. The Iran conflict and the ongoing Strait of Hormuz closure continue to support crude prices, with no firm ceasefire timeline emerging from this week’s diplomatic contacts. Risk sentiment is therefore likely to remain fragile, a backdrop that has historically tilted in favor of the safe-haven Greenback. Read more…
GBP/USD rises as fragile ceasefire lifts risk appetite, trims USD
The Pound Sterling (GBP) rises by over 0.20% against the US Dollar (USD) as risk appetite improves. The ceasefire between the US and Iran, although fragile, is holding, pushing Oil prices and the USD lower and US equities higher. Hence, the risk-sensitive GBP/USD pair trades at 1.3560, with buyers eyeing 1.3600.
The Sterling gains as softer Oil and Bank of England (BoE) tightening bets keep buyers targeting 1.3600. Read more…
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