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Pound holds near 1.36 as US data misses and Iran risk rises
GBP/USD was last around 1.3585 after US Housing Starts fell 12.4% month over month and Industrial Production growth cooled.
The British pound steadied in Tuesday trading as Middle East tensions lifted risk sentiment, with geopolitical headlines tied to Iran appearing to counteract softer US economic signals. FXStreet said GBP/USD was trading around 1.35846, after quotes briefly sat near 1.3547 on the day’s chart.
On the data side, US Housing Starts for July fell 12.4% month over month to 1.239 million from 1.415 million in June, a move attributed to higher mortgage rates and elevated home prices. At the same time, the Federal Reserve reported Industrial Production for July edged down to 0.2% month over month versus an expected 0.3%.
UK data also pointed to weakness, with the unemployment rate reported at 4.9% in June, above the 4.8% estimate. FXStreet noted the figures did not alter expectations for the Bank of England’s rate path, with money markets pricing roughly a 72% chance of holding rates at the September 17 meeting and about a 78% chance for December, based on Prime Terminal.
Technicals in the pair remained constructive, according to FXStreet, with GBP/USD holding above the moving average cluster near 1.3381 and the Relative Strength Index (14) at 63.9. Support was described as centering around the mid-1.35 area, while traders looked ahead to upcoming inflation data and the release of the Federal Reserve’s latest meeting minutes for further direction.
Latest closeGBP/USD 1.354 ▲0.3%