Geopolitical risks in the Middle East lift the US Dollar, pushing GBP/USD down 0.2% as Iran asserts control over the Strait of Hormuz.
The GBP/USD pair fell 0.2% to near 1.3400 in European trading on Thursday, pressured by rising US-Iran tensions. Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed authority over the Strait of Hormuz, warning of a ‘decisive response’ to disruptions, conflicting with US demands for regional stability.
The US Dollar Index (DXY) rose to 99.30, reflecting safe-haven demand amid escalating geopolitical risks. Earlier, the pair struggled above its 20-day Exponential Moving Average (EMA) at 1.3461, maintaining a bearish trend within a descending channel from 1.3871.
Investors now await the US Personal Consumption Expenditure (PCE) Price Index for April, due at 12:30 GMT, for further direction on monetary policy expectations.