The pair climbs toward a 1.5-week high amid softer USD demand and easing inflation concerns linked to lower oil prices.
The GBP/USD pair extended gains during Monday’s Asian session, rising toward 1.3500 as the US Dollar faced broad selling pressure. The move erased last week’s losses, which had pushed the pair to its lowest level since April 8 near 1.3300.
Weaker USD demand followed weekend developments suggesting progress in US-Iran negotiations, though key disputes remain unresolved. A sharp drop in crude oil prices to a two-week low also eased inflation fears, dragging US Treasury yields lower and weighing on the greenback.
Despite the rally, caution persists as US President Donald Trump indicated no urgency for a deal, while sticky US inflation data fuels expectations of a Fed rate hike in early 2027.