GBP/USD rebounds toward 1.3450 after losing over 1% in previous session, UK CPI eyed
GBP/USD edges higher after registering over 1% losses in the previous day, trading around 1.3440 during the Asian hours on Wednesday. Traders will focus on the UK Consumer Price Index (CPI) data for May, scheduled to be released later in the day. The inflation data is anticipated to show that price pressures have cooled down. On Thursday, the Bank of England (BoE) is also expected to keep interest rates steady at 4.25%.
Markets expect the US Federal Reserve (Fed) to keep the interest rate unchanged at the June meeting scheduled later in the North American session. Traders now see a nearly 80% probability of a Fed rate cut in September, followed by another one in October, per Reuters. Read more…
GBP/USD tumbles as markets pivot into safe havens on rising Middle East tensions
GBP/USD plummeted over 1.2% on Tuesday, backsliding through near-term congestion and popping out the other side near the 1.3400 handle after global investors were knocked off their pre-seeded hopes that the Israel-Iran altercation would find a quick and peaceful resolution.
Donald Trump, posting on social media Tuesday, declared that he wants an “UNCONDITIONAL SURRENDER” from Iranian supreme leader Ali Khamenei, and announced that American military assets were moving into the Middle East conflict region. The escalation between Israel and Iran, on top of Trump’s decision to further involve American military assets and personnel, has investors on edge as their previous hopes for a quick resolution wither on the vine. The Trump administration has a poor track record for successfully resolving geopolitical issues, both internal and external, despite the Trump team’s insistence on getting involved structurally in complex issues both at home and abroad. Read more…
GBP/USD drops towards 1.3500 as US weighs joining Israel in Iran conflict
The GBP/USD tumbled below the 1.3500 figure for the first time in the week, down over 0.39%, as tensions in the Middle East remained high, with news sources revealing that the United States (US) is weighing whether to join Israel in its confrontation with Iran. At the time of writing, the pair traded at 1.3515, having previously reached daily highs of 1.3579.
Geopolitical risks are boosting the US dollar, which, according to the US Dollar Index (DXY), which tracks the performance of the Dollar against six currencies, is up 0.31% at 98.43. On Monday, US President Donald Trump recommended Iranians in Tehran to evacuate as he exited abruptly from the G7 meeting in Canada. Read more…
