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Pound slides as Gulf war risk lifts the US dollar

GBP/USD last traded around 1.3313, while the US Dollar Index rose 0.32% to 101.46 amid rate-hike expectations after stronger US jobless claims data.

Reported · Written up by our desk · Major Pairs

The British pound weakened against the US dollar, with GBP/USD falling more than 0.40% as risk aversion intensified on escalating Middle East tensions and speculation about a prolonged US campaign against Iran, according to FXStreet.

FXStreet said the US Dollar Index edged up 0.32% to 101.46, while GBP/USD moved near the 1.3300 area after trading at a daily high of 1.3393.

The move also reflected support from US labor market data, as the US Department of Labour reported initial jobless claims for the week ending July 18 at 187K, below the 212K expected by analysts.

FXStreet added that money markets increased the odds of a Federal Reserve rate hike at the July 29 meeting, with Prime Terminal data showing chances for a hike rising toward 40% versus a 60% implied probability of holding, as traders looked ahead to S&P Global Flash PMIs and the Fed decision next week.

Latest closeGBP/USD 1.338 ▼0.4%|Dollar index 101.12 ▼0.1%

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