Pound Sterling Price News and Forecast: GBP/USD weakens to near 1.3315 early European session

FXStreet Team FXStreet

Pound Sterling weakens as Middle East tensions escalate

The GBP/USD pair faces selling pressure after registering modest gains in the previous day, trading near 1.3400 during the Asian session on Tuesday. The risk-sensitive pair weakens amid rising risk aversion as US-aligned Gulf states move closer to direct involvement in the Iran conflict, with Saudi Arabia signaling a potential military shift, according to a Wall Street Journal report.

Israel launched its latest attack on Iran despite US President Donald Trump signaling a pause in strikes on energy infrastructure after what he described as productive talks with Tehran. However, Iran’s Foreign Minister Abbas Araghchi denied any engagement with Washington. Iranian Parliament Speaker Mohammad Bagher Ghalibaf also said on Monday that no negotiations had taken place with the US. Meanwhile, senior military adviser Mohsen Rezaei stated that the conflict would persist until Iran receives full compensation for the damage incurred. Read more...

GBP/USD surges as Trump walks back threatened Iranian infrastructure strikes

GBP/USD rallied about 0.5% on Monday, recovering from an early dip near 1.3260 to trade around 1.3430 by the end of the session. The wide-range day left a long lower wick, suggesting fresh demand emerged below the 1.3300 handle as the pair extended its recovery from the mid-March low close to 1.3240. Price is now consolidating just below the session high near 1.3480.

President Trump's decision to pause planned strikes on Iran's power plants and energy infrastructure for five days sent oil prices sharply lower and lifted risk-sensitive currencies across the board. The move followed reports of weekend talks between US envoys and Iranian officials, though Tehran denied any direct negotiations had taken place. The de-escalation signal gave the Pound Sterling room to recover after a turbulent week dominated by the Bank of England's (BoE) hawkish hold. The Monetary Policy Committee (MPC) voted unanimously to keep rates at 3.75% on Thursday, a more hawkish outcome than the 7-2 split markets had expected, as all four members who voted for a cut in February switched to a hold. The BoE warned that the Middle East conflict could push Consumer Price Index (CPI) inflation to 3% to 3.5% by Q3, and markets repriced aggressively, now discounting around 65 basis points of tightening in 2026. Read more...

GBP/USD rises as Trump signals Iran de-escalation, US Dollar sinks

The Pound Sterling (GBP) appreciates sharply against the US Dollar (USD) on Monday after US President Donald Trump postponed further military action against Iran, adding that talks between the two countries were productive and could end hostilities in the Middle East. At the time of writing, GBP/USD trades at 1.3459, up by more than 0.90%.

The Greenback is on the back foot as depicted by the US Dollar Index (DXY). The DXY, which measures the performance of the buck's value against six other currencies, is down 0.54% to 98.97, a tailwind for Sterling. 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.

British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI data

The British Pound is trimming previous gains against the US Dollar on Monday, returning to the mid-range of the 1.3400s down from fresh seven-week highs, above 1.3500 earlier on the day. Weaker-than-expected UK manufacturing data added pressure on the Pound, which rallied at the Asian session opening, amid news of a halt to the hostilities in Iran.

EUR/USD struggles above 1.1500 despite USD weakness

EUR/USD struggles with its recovery above 1.1500 in European trading on Monday, despite broad US Dollar weakness and improved risk sentiment. The USD loses traction following US President Trump's call off an attack on Iran and that talks between the two sides would happen on Monday. Traders will closely monitor the developments surrounding US-Iran negotiations and US ISM PMI data.

Gold extends range play below $4,100 as rebounding USD meets receding Fed hike bets

Gold struggles to capitalize on a modest weekly bullish gap opening, and remains below the $4,100 mark heading into the European session. The US Dollar stages a modest recovery from its lowest level since June 17, which is seen capping the upside for the commodity. The upside for the USD, however, seems limited amid renewed hopes for a US-Iran peace deal and receding US Fed rate-hike expectations.

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.

Solana risks a steeper decline below $70 despite steady ETF inflows

Solana (SOL) is trading in the red, losing bullish momentum and remaining capped below its 50-day Exponential Moving Average at $75.68. SOL-focused Exchange Traded Funds show resilience with a monthly inflow of $14.62 million in July, while the near-term retail support wanes with the funding rate turning negative.

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.