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Hormuz shipping talks keep FX traders cautious on GBP/USD and EUR/USD
GBP/USD was stuck near 1.3400 as investors sought safety on renewed Strait of Hormuz jitters, while EUR/USD held around 1.1550 despite improved Eurozone sentiment data.
Deutsche Bank strategists said negotiations between Iran and Oman over a new shipping framework through the Strait of Hormuz remain finely balanced, with Tehran linking any lasting arrangement to broader demands on the United States. The setup has kept market focus on a risk premium for Middle East shipping, influencing currency positioning.
In European trading, GBP/USD hovered around 1.3400, moving away from a more than three week high near levels just above 1.3500 that it touched on Friday. The pair faced headwinds from a modest US dollar rebound as investors favored safety amid renewed jitters tied to the Strait of Hormuz reopening and ongoing US-Iran talks.
EUR/USD stayed in its range near 1.1550 on Monday, holding the retreat from fresh highs since June 17. FXStreet said the move reflected a reaction to disappointing US jobs data on Friday, and that the renewed Middle East tensions supported the dollar and capped upside attempts, even as Eurozone sentiment data improved.
The broader risk backdrop also influenced other market signals, with gold reversing a dip and rising toward the top of its daily range in the European session, while FXStreet noted Brent had rebounded from midweek lows but still finished last week sharply lower as markets priced partial de escalation.
Latest closeGold $4,292.00 ▲1.1%|Brent $83.46 |EUR/USD 1.152 ▼0.3%