Pound Sterling Weakens, US Dollar Sought Amid US-Iran Uncertainty
GBP/USD weakened in trading on Monday (June 29th) during the Asian session, hovering around the 1.3200 level, after the pound was pressured by a strengthening US dollar. This weakening occurred due to increased demand for safe-haven assets amid uncertainty in talks between the United States and Iran regarding the conflict in the Gulf region and the Strait of Hormuz.
Pressure on GBP/USD arose as demand for safe-haven assets increased. The US dollar was again sought by investors as the market monitored the uncertainty in talks between the United States and Iran regarding the conflict in the Middle East.
Market participants remained highly sensitive to the latest developments in the region. According to a Reuters report on Sunday, the United States and Iran reportedly agreed to temporarily halt mutual attacks in the Gulf region and resume discussions regarding the dispute in the Strait of Hormuz.
This opening of diplomatic channels comes after several days of retaliatory action between the two countries. Tensions escalated after an Iranian projectile reportedly hit a cargo ship on Thursday, which then sparked mutual accusations between Washington and Tehran of violating a temporary ceasefire on June 17th.
In the UK, market attention is also focused on domestic political dynamics. After Keir Starmer resigned as Labour Party leader due to political pressure, newly elected MP Andy Burnham is scheduled to present his national vision on Monday. The lack of strong competition could potentially pave the way for Burnham to become Prime Minister as early as July 17. (asd)
Source: Newsmaker.id
