Weaker-than-expected US housing and industrial production data counterbalance Middle East geopolitical risks, stabilizing the pound.
The GBP/USD pair remains steady at 1.35846 as softer US economic data offsets rising geopolitical tensions in the Middle East. US Housing Starts plunged 12.4% month-over-month in July to 1.239 million, down from June’s 1.415 million, driven by higher mortgage rates and elevated home prices. Industrial Production also underperformed, rising just 0.2% against expectations of 0.3% growth.
Geopolitical risks escalated after US officials reaffirmed a naval blockade on Iran, while Iranian leaders dismissed negotiations as surrender. UK jobs data showed unexpected weakness, with unemployment rising to 4.9% in June, though markets await Wednesday’s Consumer Price Index for further BoE policy clues.
The pound’s stability reflects a balance between weaker US data and persistent geopolitical uncertainty, with traders eyeing upcoming inflation figures for directional cues.