Pound Sterling Price News and Forecast: GBP/USD rises after a US-Iran two-week ceasefire

FXStreet Team FXStreet

Pound Sterling advances as US-Iran ceasefire improves market sentiment

GBP/USD extends its winning streak for the third consecutive day, trading around 1.3400 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) declines on decreased safe-haven demand after the United States (US) and Iran agreed on a two-week ceasefire.

However, the GBP/USD pair’s upside may be limited as the Pound Sterling (GBP) could struggle after the US-Iran ceasefire eased oil prices, dampening inflation pressures and giving the Bank of England (BoE) room to resume easing. Prior to the conflict, markets had priced in two to three rate cuts for 2026, expectations that were later erased by the energy-driven inflation shock. Read more...

GBP/USD surges toward 1.3400 as Iran ceasefire deflates the US Dollar

GBP/USD ripped higher on Tuesday as the US Dollar buckled under a wave of risk-on positioning triggered by President Trump's announcement of a two-week ceasefire with Iran. The pair surged from the low 1.3200s into the upper 1.3300s, reclaiming ground above both the 50 and 200-period hourly moving averages in the process.

The move was almost entirely a Dollar story. WTI Crude Oil cratered from above $106 to below $90 per barrel as traders, who had already been fading Trump's deadline rhetoric throughout the session, piled into the selloff once the Truth Social post confirmed the pause. S&P 500 futures jumped over 1%, and the US Dollar Index (DXY) slid back toward 100.00 as the haven bid that had propped up the Greenback for weeks started to unwind. Read more...

GBP/USD climbs as Middle East ceasefire hopes ease fresh fears

The Pound Sterling (GBP) rises by over 0.20% against the US Dollar (USD) on Tuesday amid speculation of a ceasefire agreement, but newswires revealed that the chances of a deal are far, increasing the likelihood of a US attack as Donald Trump’s deadline approaches. GBP/USD trades at 1.3241, still above its opening price.

Risk appetite deteriorates amid the escalation of the conflict in the Middle East. Oil prices are rising, but the Greenback has failed to gain traction, despite its positive correlation with WTI, as the US Dollar Index (DXY), which measures the buck's performance against a basket of six currencies, is down 0.14% to 99.84. Read more...

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