Market caution over US-Iran negotiations supports the USD, weighing on GBP/USD near 1.3400 in early trading.
GBP/USD retreated to around 1.3400 during Asian trading hours Tuesday, reversing minor gains from the previous session. The decline follows heightened market caution ahead of updates on US-Iran negotiations, bolstering demand for the USD as a safe-haven asset.
The pair had briefly recovered from earlier losses but failed to sustain momentum. Prior sessions saw GBP/USD fluctuate within a narrow range, reflecting mixed sentiment amid geopolitical uncertainties and shifting expectations for monetary policy.
No immediate market reaction was reported beyond the modest pullback in early trading.