Pound Sterling Price News and Forecast: GBP/USD remains in negative territory on renewed US–Iran tensions

FXStreet Team FXStreet

Pound Sterling stays weaker near 1.3500 as safe-haven demand lifts US Dollar

GBP/USD pares its recent losses after opening at a gap down, still trading lower around 1.3500 during the Asian hours on Monday. The pair faced challenges as the US Dollar (USD) drew support from heightened safe-haven demand amid re-escalating United States (US)–Iran tensions.

The Guardian reported on Monday that Iran’s Foreign Ministry spokesman Esmail Baghaei said the US blockade of Iran’s ports and coastline is an act of aggression that violates the ceasefire. Baghaei posted on social media, "By deliberately inflicting collective punishment on the Iranian population, it amounts to a war crime and crimes against humanity.” Read more...

Pound Sterling remains on the back foot as US-Iran tensions lift USD; bears seem hesitant

The GBP/USD pair opens with a bearish gap at the start of a new week and moves further away from a two-month high, around the 1.3600 mark, touched on Friday. Spot prices, however, recover a few pips from a one-week low set during the early Asian session and currently trade just below the 1.3500 psychological mark, still down over 0.15% for the day.

The global risk sentiment takes a turn for the worse amid renewed US-Iran tensions over the Straight of Hormuz, which, in turn, provides a goodish lift to the safe-haven US Dollar (USD) and exerts pressure on the GBP/USD pair. Iran closed the strategic waterway after briefly opening it over the weekend. This comes on top of the US naval blockade of Iranian ports, and tempers hopes for more peace talks before the end of the current ceasefire on April 22. Read more...

Author

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.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

Gold remains below $4,100 despite receding Fed hike bets, weak USD

Gold opens with a bullish gap at the start of a new week amid receding Fed rate-hike expectations and a bearish US Dollar. Oil prices tumbled after Trump canceled an attack on Iran and said that a deal is near, easing inflation fears. This forces traders to dial back bets on extreme Fed tightening and drags the USD to a fresh low since June 17, which, in turn, is supporting the non-yielding bullion. However, the recent repeated failures to find acceptance above $4,100 warrant caution for XAU/USD bulls.

Gold remains offered around $4,050 despite falling Oil prices

Gold remains offered around $4,050 in Asia on Monday, despite the sharp sell-off in Oil prices and the USD/JPY slump-driven US Dollar weakness. Prospects of Fed rate hikes and Mideast uncertainty keep the bullion under pressure, as the Nonfarm Payrolls (NFP) week kicks in.

Week ahead: US payrolls report and AI earnings to keep investors on edge

After the Fed decision, NFP report awaited for more rate hike clues. Employment also on the agenda in Canada and New Zealand. Chinese trade and Japanese wage data to be watched too. But Iran and AI headlines to remain in driver’s seat for risk sentiment.

Bitcoin dips, Ethereum consolidates, XRP stalls

Bitcoin, Ethereum and Ripple steadied on Monday after falling over 2.8%, 3.55% and 2.35%, respectively, the previous week. BTC trades below the key resistance level, ETH consolidates between the 50-day and 100-day Exponential Moving Averages.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.