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GBP/USD holds near one-month high as risk sentiment cools

GBP/USD was last around 1.3406 after earlier touching about 1.3451, as investors weighed renewed US-Iran hostilities alongside the Fed’s minutes showing support for further tightening while holding rates.

Reported · Written up by our desk · Major Pairs

FXStreet reported that the British pound held steady in the North American session as risk appetite deteriorated after President Donald Trump said on social media that the US ceasefire with Iran is over, even as talks are set to continue.

The outlet said GBP/USD was trading around 1.3406, after rising to an almost one-month high of 1.3451 earlier in the day, and that the pair is on track to close the week up more than 0.58% on the renewed Middle East tensions.

FXStreet pointed to a potential USD boost if the ceasefire ends, while noting that Fed meeting minutes showed officials favored further tightening but supported holding rates as they assess incoming data. It added that Initial Jobless Claims came in better than expected but did not materially move markets amid the geopolitical focus.

Looking ahead, FXStreet said investors are watching next week’s inflation releases on the consumer and producer sides, along with multiple Federal Reserve officials’ speeches, the University of Michigan Consumer Sentiment survey, and the appearance of the new Fed Chair Kevin Warsh before Congress. In the UK, it noted the upcoming Bank of England commentary, Retail Sales, and May GDP, plus that the IMF upgraded its 2026 UK growth forecast to 1.0%.

Latest closeGBP/USD 1.341 ▲0.5%

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