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GBP/USD stays below 1.3450 as US-Iran uncertainty lifts USD demand

ING analysts link the move to oil price swings after optimism about potential US-Iran talks, with ongoing denials and Strait of Hormuz risks keeping markets jittery.

Reported · Written up by our desk · Major Pairs

GBP/USD remained capped below 1.3450 in the European session as uncertainty around potential US-Iran negotiations continued to drive traders toward the US dollar, a safe-haven currency.

FXStreet said the risk-sensitive British pound was pressured while markets looked ahead to US data, including the JOLTS Job Openings Survey, and noted Mideast headlines continued to influence sentiment.

In related energy coverage, ING strategists pointed to sharp oil weakness after optimism about a potential US-Iran Middle East deal, while also warning markets may be overreacting given Iranian denials of negotiations and renewed security risks in the Strait of Hormuz and Black Sea.

FXStreet added that European gas weakened and that storage and demand dynamics were viewed as more comfortable than in 2021, as flows and loading activity tied to the CPC terminal and tanker risks remained factors for oil markets.

Latest closeGBP/USD 1.343 ▼0.2%

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