Safe-haven demand lifts the US Dollar as US-Iran negotiations remain uncertain, pressuring the British Pound ahead of key US jobs data.
The GBP/USD pair fell to 1.3425 in early Asian trading Tuesday, driven by heightened demand for the safe-haven US Dollar amid uncertainty over US-Iran talks. US President Donald Trump indicated negotiations could resume soon, but Iran denied ongoing discussions, citing focus on Oman-mediated talks over the Strait of Hormuz.
Stronger-than-expected US economic data added support to the USD. The ISM Manufacturing PMI rose to 55.6 in July, exceeding the 54.0 forecast and June’s 53.3 reading. Meanwhile, the Bank of England held rates at 3.75% last week, with Governor Andrew Bailey tempering expectations for near-term hikes.
Markets now await Friday’s US jobs report for further direction on monetary policy and risk sentiment.