Pound Sterling Price News and Forecast: GBP/USD depreciates amid escalating Middle East tensions

British Pound declines as risk-off mood prevails on Middle East tensions

GBP/USD extends its losses for the second successive day, trading around 1.3390 during the Asian hours on Wednesday. The pair depreciates as the US Dollar (USD) receives support from increased risk aversion stemming from the Middle East conflict.

Bloomberg reported on Tuesday that US President Donald Trump recently threatened to resume attacks on Iran in two or three days as part of a push for a deal to end the war. This came after a brief pause in planned hostilities following a new proposal by Tehran to end the US-Israeli conflict. Meanwhile, an Iranian official stated that the US threat of a massive assault would be met resolutely, asserting that Iran is fully prepared to confront any military aggression. Read more...

Pound Sterling clings to long-term support as UK labour data muddies the BoE call

Tuesday handed the Pound a labour market reading that was mixed enough to satisfy nobody. UK payroll data showed Average Earnings excluding bonuses cooling to 3.4% on the three-month-on-year measure, in line with consensus, while the Including Bonus figure ran hot at 4.1% against a 3.8% expectation. The Employment Change print was a chunky 148K, but the headline ILO Unemployment Rate ticked up to 5% versus the 4.9% reading both expected and prior, and the Claimant Count Change came in north of 26K.

The Bank of England (BoE) had wanted a clean signal. Instead it got a labour market that is still adding jobs faster than the population is willing to absorb them, with wages mostly cooling but a stubborn bonus-driven tail, and unemployment quietly drifting higher. Sterling slid through Tuesday's London session, eventually probing below 1.34 in late trade before clawing back toward the handle into the close. Read more...

British Pound slides as US yields spike, UK jobs market cracks

The British Pound (GBP) retreats by 0.31% during the North American session as the US Dollar (USD) rises, underpinned by soaring US Treasury yields as investors price in a spike in inflation from the energy shock. The GBP/USD pair trades at 1.3392 after reaching a daily high of 1.3437.

Geopolitical matters and their impact are driving the financial markets. High energy prices due to Iran’s war prompted investors to increase risk premiums in the bond market, with the US 10-year Treasury note reaching a 16-month peak of 4.687% as traders priced in a Federal Reserve (Fed) rate hike towards the end of the year. Read more...