Pound Sterling edges higher as Middle East war de-escalates
The Pound Sterling (GBP) trades slightly higher against its major currency peers, rising 0.12% to near 1.3242, during the Asian trading session on Wednesday. The British currency gains as demand for riskier assets has improved, following the announcement from Iran that is willing to end the war with the United States (US).
According to the Iranian state news agency, Iran’s President Masoud Pezeshkian told European Union (EU) Council President António Costa on Tuesday that his country is ready to end the war with the US, but it needs certain guarantees. Read more…
GBP/USD snaps five-day slide on Iran peace hopes ahead of key US data
GBP/USD edged 0.32% higher on Tuesday in choppy trading, closing around 1.3230 after swinging between a session low near 1.3160 and a high close to 1.3260. The gain snapped a five-day losing streak, though the bounce lacked conviction and left price well below its key moving averages overhead. Tuesday’s candle printed a long lower wick, suggesting dip-buying interest is emerging near the bottom of the pair’s recent range, but the broader pullback from the January highs about 1.3870 to the recent low around 1.3010 still dominates the picture.
The bounce was driven by a wave of risk appetite after multiple reports suggested the US-Iran conflict may be approaching a resolution. The Wall Street Journal reported that President Donald Trump told aides he was willing to end military hostilities even if the Strait of Hormuz remained largely shut, while the New York Post later reported he believes the war will likely end soon, with other nations taking the lead in reopening the Strait. Markets also seized on comments from the Iranian President, who stated in a call with European officials that Iran was open to peace; however, his remarks were taken largely out of context, given his limited control over Iranian military operations and the fact that Iran’s five-point demand list has not materially shifted. Read more…
GBP/USD edges up as weak US jobs data offsets risk aversion
The Pound Sterling (GBP) registers modest gains on Tuesday after Iran’s IRGC threatened to attack US companies as of April 1, turning the market mood sour, while the US Dollar (USD) trimmed some of its earlier losses. Nevertheless, the move was short-lived as GBP/USD trades at 1.3190, up 0.04%.
Iran’s state media reported that Iran’s Islamic Revolutionary Guard Corps (IRGC) would target US companies within the region in retaliation for attacks on Iran. Some of the names targeted are Microsoft, Apple, Google, Intel and Boeing among the 18 companies warned by the IRGC. Read more…
