The British Pound stabilizes above 1.3450 as US Dollar weakens on Iran deal hopes and reduced Fed rate hike bets.
The GBP/USD pair trades around 1.3470 in early Asian trading, consolidating gains from the past two sessions. The US Dollar remains near a seven-week low as optimism grows over a potential US-Iran peace deal and the reopening of the Strait of Hormuz for commercial shipping.
Crude oil prices hover near a three-week low, easing inflation concerns and reducing expectations for a Federal Reserve rate hike. This shift in Fed policy outlook further weighs on the USD, supporting the GBP/USD pair’s upward momentum. The pair remains within Monday’s broader range as traders await further developments in the Middle East.
Analysts note the Pound’s resilience, citing bullish trend indicators and last week’s solid gains. While short-term oscillators suggest potential upside, the pair’s movement remains cautious amid geopolitical uncertainties.