The British Pound (GBP) is trading higher against the US Dollar (USD) on Monday, to pare losses from a four-day sell-off.
The pair is trading above 1.3350 at the time of writing, after bouncing from six-week lows at 1.3302 earlier in the day, as rumours of ongoing peace talks between the US and Iran have hit the safe-haven USD
Washington and Tehran would be negotiating around a recent proposal submitted by Iranian authorities, according to comments by an Iranian Foreign Ministry spokesperson released by Iranian state media. The same source affirms that Iranian and Omani technical teams met in Oman last week to discuss restoring safe passage through the Strait of Hormuz. Trump: “The clock is ticking” on Iran This news has eased previous concerns about the resumption of hostilities, which had crushed market sentiment during the Asian session.
A drone attack on a nuclear plant in the United Arab Emirates over the weekend put further strain on a fragile ceasefire. US President Donald Trump responded, warning Tehran that “the clock is ticking,” after meeting top national security officers to discuss the forward path in the conflict. The Sterling, on the other hand, has weaknesses of its own as UK political uncertainty grows by the minute.