GBP/USD managed to rise, but pressure factors remain in place
GBP/USD rose to 1.3450 on Wednesday. Expectations of de-escalation in the Middle East supported the pound, as lower oil prices reduced inflationary risks for the British economy, which is heavily dependent on energy imports.
Despite this localised strengthening, investors continue to monitor the development of the conflict between the United States, Israel and Iran closely. Its consequences could significantly affect the global economy. The situation remains uncertain: US President Donald Trump has suggested the war could end soon, but Iran’s Islamic Revolutionary Guard Corps stated that oil shipments through the Strait of Hormuz will not resume while attacks by the United States and Israel continue. Read more…
Pound Sterling rises as sentiment improves on lower Oil prices
GBP/USD gains ground after registering little losses in the previous session, trading around 1.3450 during the Asian hours on Wednesday. The Pound Sterling (GBP) strengthens against its peers amid optimism that the Middle East conflict may have a smaller impact on inflation than initially feared.
Market sentiment improved as oil prices cooled after the Wall Street Journal reported that the International Energy Agency (IEA) is considering its largest-ever oil reserve release to stabilize markets. The proposed drawdown would exceed the 182 million barrels released in 2022 following Russia’s invasion of Ukraine. Read more…