The British pound rises against the dollar after a US-Iran peace agreement reduces geopolitical risks and weakens the greenback.
GBP/USD advanced to 1.3450 in Asian trading on Monday, recovering from minor losses as the US dollar retreated. The move follows reports of a US-Iran peace deal, easing risk aversion and boosting market sentiment.
The agreement, confirmed by Iran’s National Security Council, includes an immediate ceasefire and the reopening of the Strait of Hormuz. Both sides agreed to end military operations, though final deal talks hinge on fulfilling prior commitments. The UK’s April GDP contraction of 0.1% has also raised doubts about further Bank of England rate hikes.
Investors are now focused on the BoE’s upcoming meeting, where rates are expected to remain unchanged amid cooling inflation pressures.