Sterling declines as US-Iran negotiations stall and disappointing UK business activity weigh on the currency.
The GBP/USD pair fell 0.2% to 1.3406 on Thursday, pressured by doubts over a potential US-Iran deal and weaker-than-expected UK PMI figures. The decline reflects concerns over stalled negotiations and subdued business activity in the UK, which offset strong US economic data.
Earlier, the pound had peaked near session highs before retreating as investors digested mixed signals. UK PMI data indicated a slowdown in business activity, adding to concerns about economic momentum. Meanwhile, robust US economic indicators provided support for the dollar, further weighing on sterling.
Market reaction remained muted, with traders awaiting further developments on the US-Iran front and additional economic releases.