Geopolitical risks from US strikes on Iran drive risk-off sentiment, pushing the British pound to a near-term low against the dollar.
The GBP/USD pair fell below 1.3500, trading at 1.3470 in Asian hours, as escalating Middle East tensions spurred a flight to safety. US military strikes against Iran heightened geopolitical uncertainty, weighing on risk-sensitive assets like the pound.
Earlier this week, the pair hovered near 1.3550, supported by modest USD weakness. However, the shift in sentiment reversed those gains, with traders now eyeing the upcoming Michigan Consumer Sentiment Index for further direction.
Markets showed limited immediate reaction beyond the currency move, though broader risk assets may face pressure if tensions persist.