Pound Sterling Price News and Forecast: GBP/USD falls as Iran deal doubts, weak UK PMI bite
British Pound declines against US Dollar as US-Iran deal optimism fades
Following stronger-than-forecast inflation data, the Dollar advanced as safe-haven flows eased amid the Middle East truce. DXY targets $99.48–$99.66 after channel breakout, EUR/USD breaks lower toward $1.158, and GBP/USD holds $1.3445 with buyer defense.
GBPUSD managed to hold above the support of 1.3280 to rebound towards 1.3462. As we see over the chart, the market is facing a daily trend support around 1.3280 which could lead to a rebound with resistance around 1.3630.
GBP/USD was trading at 1.3428 on Thursday, following a period of volatility after the release of UK inflation data, which came in weaker than expected despite geopolitical tensions over Iran and rising oil prices.
The Pound to Dollar (GBP/USD) exchange rate drifted lower on Wednesday after softer-than-expected UK inflation data added to concerns that the Bank of England may delay further monetary tightening. At the time of writing, GBP/USD was trading around $1.3385, marginally lower on the session.
Pound Sterling Price News and Forecast: GBP/USD flatlines near 1.3435 in Thursday's Asian session
Pound Sterling Price News and Forecast: GBP/USD rebounds as Iran deal hopes sink USD
UK CPI fell to its lowest rate in over a year, to 2.8% year-on-year in April, down from 3.3% in the previous month, amid a more favourable annual comparison and government support with bills. The figure was lower than the 3% forecast despite higher petrol pump prices.
Sticky US inflation data gave the Dollar fresh momentum despite the ongoing US-Iran ceasefire. DXY reclaimed $99.39 with bullish channel breakout, EUR/USD faced bearish Fib breakdown, and GBP/USD held rising channel floor at $1.3393.
Pound Sterling Price News and Forecast: GBP/USD depreciates amid escalating Middle East tensions
Kevin Warsh was confirmed as the next Federal Reserve Chairman after a lengthy, unpredictable political process and financial markets are already experiencing significant changes.