Home›Forex›Major Pairs›Pound rises toward 1.3400 as UK political risk cools

Pound rises toward 1.3400 as UK political risk cools

GBP/USD strength comes as UK political uncertainty eases after Keir Starmer’s late-June resignation, while Fed hawkish minutes and US-Iran tensions keep a bid on the dollar.

Reported · Written up by our desk · Major Pairs

The British pound firmed against the US dollar in Asian trading, with GBP/USD climbing to around 1.3395, supported by fading UK political uncertainty.

FXStreet linked the move to reduced domestic risk following Keir Starmer’s late-June resignation, with the formal process to choose his replacement starting July 9 and front-runner Andy Burnham expected to be prime minister by July 20, according to the article.

However, the same piece noted that hawkish minutes from the Federal Reserve’s June meeting, the first for Chair Kevin Warsh, could keep US rate expectations elevated, while renewed US-Iran tensions may reinforce demand for safe-haven currencies.

FXStreet also cited the US launching new airstrikes hitting Iran and Iran’s retaliatory fire targeting Bahrain, Kuwait and Qatar, a pattern that has again threatened an interim deal to help end the conflict in the Persian Gulf.

Latest closeGBP/USD 1.329 ▼0.5%

More like this

Sources