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Pound rises above 1.3400 as dollar pulls back

GBP/USD climbed for a second day after Fed minutes came out and after renewed US-Iran talks helped keep risk sentiment steadier.

Reported · Written up by our desk · Major Pairs

The British pound strengthened against the US dollar for a second straight day on Thursday, pushing GBP/USD to fresh three-week highs just above 1.3400, according to FXStreet.

FXStreet attributed the move to a pullback in the greenback after the Federal Reserve released minutes from its June meeting, alongside market chatter about the resumption of US-Iran negotiations.

The report said the dollar has been weaker since the Fed minutes, with investors weighing the timing of the next US rate hike as the committee maintained its push to fight inflation while showing differences in its monetary policy outlook.

In the UK, FXStreet noted the pound stayed supported amid a political impasse, and it cited the frontrunner to replace Keir Starmer at Downing Street, Andrew Burnham, who pledged to follow the fiscal rules set by Chancellor Rachel Reeves, which has eased fears of a debt crisis.

Latest closeGBP/USD 1.337 ▲0.6%

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