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Pound steadies near 1.3640 as Iran sanctions and Fed focus returns

GBP/USD was little changed near 1.3640, while the US Dollar Index rose 0.15% to 98.98 ahead of speeches by Scott Bessent and Fed Chair Kevin Warsh.

Reported · Written up by our desk · Major Pairs

The British pound held steady versus the US dollar, with GBP/USD trading around 1.3640 and barely unchanged after opening with a bearish gap, according to FXStreet. Traders were watching potential market implications from the US upcoming remarks tied to Iran sanctions, alongside forthcoming Fed commentary later in the week.

FXStreet said US Treasury Secretary Scott Bessent wrote in the Financial Times warning Tehran that an “economic D-Day” is coming, and that countries linked to the regime could face retaliation from Washington. A press conference and Q&A were expected around 17:00 GMT, adding to uncertainty over the dollar’s near term direction.

In FXStreet’s coverage, the US economic calendar was described as light on Monday, before adding housing data and the Conference Board’s consumer confidence on Tuesday. The schedule then turns heavier on Wednesday with GDP and durable goods orders, followed by the Fed’s preferred inflation gauge, Core PCE, later.

In the UK, FXStreet noted Prime Minister Andy Burnham told European Council President Antonio Costa that Great Britain would be bolder in closing ties with the European Union. It also reported that investors saw no chance of a Bank of England rate hike at the September meeting, with Prime Terminal putting the odds of a hold at 78%, and the odds of a 25-basis-point increase at 78% for December. Technicals cited by FXStreet placed the pair around 1.3634, extending its advance above reclaimed trend lines and a moving average cluster near 1.3400.

Latest closeGBP/USD 1.354 ▲0.3%

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