The currency pair climbs 0.35% as a US-Iran agreement boosts market sentiment ahead of key UK and US data releases this week.
The GBP/USD pair advanced 0.35% to 1.3460 in late Asian trading on Monday, extending a week-long rally. The move follows a US-Iran deal announcement, which lifted investor risk appetite, pushing S&P 500 futures up over 1% and Asian markets broadly higher.
The US Dollar Index (DXY) fell 0.4% to near 99.40, reflecting weakness in the Greenback. A memorandum of understanding between the US and Iran is set to be signed on June 19 in Switzerland, according to Pakistan’s Prime Minister.
Traders are bracing for volatility as UK labor market data, May CPI figures, and the Bank of England’s policy decision loom this week. In the US, the Federal Reserve’s Wednesday announcement will be closely watched.