Pound Sterling Price News and Forecast: GBP trades higher against its major currency peers

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Pound Sterling outperforms its peers as Trump’s peace call underpins risk-on mood

The Pound Sterling trades higher against its major currency peers, rising 0.17% to near 1.3200 against the US Dollar (USD), during the European trading session on Tuesday. The British currency outperforms as the market sentiment turns favorable for riskier assets, following United States (US) President Donald Trump’s statement that he is willing to end the war with Iran despite the Strait of Hormuz remaining largely closed.

S&P 500 futures trade sharply higher ahead of the opening, signifying an improvement in investors’ risk appetite. According to a report from the Wall Street Journal (WSJ), US President Trump is ready to call a peace with Iran, and will pursue the diplomatic way for evacuating the Strait of Hormuz, as Washington doesn’t intend to extend the military mission beyond his timeline of four to six weeks. Read more...

GBP/USD – Pause for recovery needed after five-day sell-off

GBP/USD is attempting to recover on Tuesday following earlier declines, bouncing from 1.3198 after five consecutive sessions of selling. Sterling remains under pressure as investors assess the impact of the Iran conflict on the British economy.

Despite this, since the beginning of March, the pound has remained one of the most stable currencies against the dollar. However, sterling remains vulnerable. Britain's high reliance on gas imports, persistently high inflation, and pressure on public finances are heightening risks. The yield on 10-year government bonds is holding around 4.98%, near highs not seen since 2008, following recent increases. Read more...

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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