The British pound gave up a risk-driven surge to 1.3450 after oil prices fell on US-Iran tensions easing, settling back near 1.3400.
GBP/USD spiked to 1.3450 early Monday as a US-Iran ceasefire and the reopening of the Strait of Hormuz triggered a drop in crude oil prices and boosted risk sentiment. The move proved short-lived, with the pair retracing to 1.3400 by mid-session.
The initial rally mirrored broader gains in risk-sensitive currencies, driven by reduced geopolitical risks in the Middle East. However, the absence of fresh catalysts left traders cautious ahead of the Federal Reserve’s upcoming policy decision.
Markets showed limited reaction to the reversal, with focus shifting to macroeconomic data and central bank commentary later in the week.