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British pound slips amid risk-off mood and offshore Middle East backdrop

GBP/USD was around 1.3305 after a day high near 1.3363, with Fed pricing pointing to unchanged rates and only about a 40% chance of a 25 basis point hike.

Reported · Written up by our desk · Major Pairs

The British pound fell about 0.13% versus the US dollar in a risk-off tone, even as the greenback was flat on the day, FXStreet reported. The move came as investors reacted to news about a Chinese state-backed company producing chipmaking machines, which was linked to a sell-off in ASML, the Dutch-based chip equipment maker.

FXStreet also tied broader sentiment to easing in the Middle East, noting that oil prices slid after the US paused attacks on Iran over the weekend. US President Donald Trump warned that additional military action could follow if negotiations between Washington and Tehran fail.

In the US, traders digested Durable Goods Orders for June, which improved to 0.3% month-on-month after a -4% contraction, though it missed an expected 1.6% expansion. Focus remains on the Federal Reserve meeting, where rates are expected to be kept unchanged, with roughly 60% odds for no change and around 40% odds for a 25 basis point hike, according to Prime Terminal data.

In the UK, investors are also looking ahead to the Bank of England meeting, with expectations it will keep rates at 3.75%, despite July oil-price strength. FXStreet said GBP/USD was holding a mild bearish bias below an average cluster near 1.3367, while resistance sits around that zone and support is highlighted near 1.3159.

Latest closeGBP/USD 1.332 ▼0.4%

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