Pound Sterling reclaims three-year high against USD after Israel-Iran ceasefire
The Pound Sterling (GBP) extends its Monday’s upside move to near 1.3630 against the US Dollar (USD) during European trading hours on Tuesday. The GBP/USD pair strengthens as a global risk rally driven by the ceasefire between Israel and Iran has dampened demand for safe-haven assets such as the US Dollar.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, falls sharply to near 98.13 on Tuesday from a fresh two-week high of around 99.40 posted the previous day. Read more…
GBP/USD Forecast: Pound Sterling bulls take over as focus shifts to Powell
After falling to its weakest level in a month early Monday, GBP/USD made a sharp U-turn and ended the day decisively higher. The pair preserves its bullish momentum and trades near 1.3600 in the European session on Tuesday as market focus shifts to Federal Reserve (Fed) Chairman Jerome Powell’s testimony before the House Financial Services Committee.
News of Iran and Israel agreeing to a ceasefire helped the market mood improve late Monday and caused the US Dollar (USD) to come under heavy selling pressure. As risk flows continue to dominate the financial markets on Tuesday, the USD struggles to find demand and allows GBP/USD to continue to stretch higher. At the time of press, US stock index futures were rising between 0.7% and 1.2% on the day, while the USD Index was down about 0.25%. Read more…
