The British pound gains against the dollar as WTI crude falls 3.3% to $93.04, offsetting geopolitical risks from Lebanon ceasefire doubts.
The GBP/USD pair climbed to 1.3439, recovering from a retracement after Hezbollah rejected a proposed Israel-Lebanon ceasefire. The pound’s advance followed a 3.3% drop in West Texas Intermediate crude to $93.04, pressuring the USD due to its inverse correlation with oil prices.
Geopolitical tensions persisted as Israel conducted strikes in southern Lebanon, while Iran emphasized the need for a ceasefire to advance US peace talks. The US Dollar Index (DXY) fell 0.21% to 99.34, reflecting broader weakness amid easing inflation concerns tied to energy markets.
US jobless claims for the week ending May 30 rose to 225K, exceeding estimates of 213K and up from a revised 212K prior. The 4-week average increased to 214.75K, while Challenger job cuts surged to 97.006K in May from 83.387K.