The pair rebounds 50 pips in Asian trading but struggles near 1.3600 as geopolitical risks and Fed policy support the USD.
The GBP/USD pair erased early losses, climbing nearly 50 pips to reclaim the 1.3600 level during Asian trading. The recovery follows a bearish gap at the week’s open, though firmer USD demand limits further gains.
Geopolitical tensions, including stalled US-Iran peace talks and renewed hostilities, bolster the safe-haven USD. Upbeat US jobs data and elevated Treasury yields also reinforce expectations of a hawkish Fed, capping the pair’s upside. Meanwhile, easing concerns over UK political stability and the Bank of England’s hawkish stance provide some support for the GBP.
Oil price gains and inflation worries add to USD strength, keeping pressure on the GBP/USD pair despite its intraday rebound.