Pound Sterling weakens as Middle East tensions drive oil surge and USD safe-haven demand
The GBP/USD pair attracts some sellers to around 1.3315 during the early European session on Monday, dragged by a firmer US Dollar (USD). The preliminary readings of Purchasing Managers Index (PMI) from the United Kingdom (UK) and the United States (US) will be released later on Tuesday.
Escalating war in the Middle East has pushed Brent crude oil prices above $100 per barrel. This has triggered safe-haven demand for the Greenback and increased inflationary pressure globally. Iranian officials vowed retaliation across the region if US President Donald Trump carries out a threat to bomb Iran’s power plants. This remark came as Trump said Saturday he would order the bombardment if the Strait of Hormuz was not fully open to shipping within 48 hours. Read more…
GBP/USD Price Forecast: Declines below 1.3350 as bearish momentum builds amid stronger USD
The GBP/USD pair holds losses near 1.3335 during the Asian trading hours on Monday, pressured by a stronger US Dollar (USD). Escalating conflict in the Middle East pushed Brent crude oil prices above $100 per barrel. This has triggered “stagflation” fears for the UK and weighed on the Cable against the USD.
The Bank of England (BoE) kept interest rates steady at 3.75% at its March meeting last week, as widely expected. BoE Governor Andrew Bailey said that the Middle East conflict will cause a “shock to the economy” that will push up inflation in the near term, adding that restoring safe shipping through the Strait of Hormuz is key to addressing energy price rises. Read more…
Pound Sterling declines as US prepares ground operation to seize Iran’s Kharg Island
The GBP/USD pair faces some selling pressure near 1.3320 during the early Asian session on Monday, pressured by risk-off sentiment. Ongoing conflicts in the Middle East fuel demand for safe-haven currencies such as the US Dollar (USD) and create a headwind for the major pair.
The Jerusalem Post reported early Monday that the US is considering launching a ground military operation to seize the Iranian island of Kharg. A US official confirmed to the Post that “the US military has accelerated the deployment of thousands of Marines and Navy personnel to the Middle East.” Read more…