Safe-haven demand lifts the US Dollar, pressuring GBP/USD to 1.3390 amid escalating US-Iran geopolitical risks.
GBP/USD fell to 1.3390 in early European trading on Monday, extending losses as the US Dollar gained on heightened safe-haven demand. The pair trimmed some daily losses but remained in negative territory amid rising geopolitical tensions between the US and Iran.
Prior to the move, GBP/USD had stabilized near 1.3420, but the shift in risk sentiment reversed gains. The US Dollar Index (DXY) climbed as investors sought safety, overshadowing broader market trends.
No immediate market reaction data was reported beyond the currency pair’s decline.