GBP/USD Under Pressure, Approaching 1.3400 Amid Iran-US Tensions
The GBP/USD pair continued to slide to near 1.3400 during the Asian session on Monday morning, dragged down by a surge in safe-haven demand following the US airstrike on three Iranian nuclear sites. Rising geopolitical tensions boosted the US dollar, while market participants awaited the release of preliminary PMI data from the UK and the US that would provide further clues on the economic outlook of the two countries.
US President Donald Trump’s tough remarks, claiming to have “totally destroyed” Iran’s main nuclear facility and threatening further attacks, soured risk sentiment. On the other hand, Iran vowed to retaliate and stated that it was ready to use “all options” to defend itself. Concerns about an escalation of the conflict involving Israel and the US have prompted investors to flee riskier currencies such as the pound sterling, strengthening the greenback’s position against the cable.
Source: News Maker