British Pound steadily climbs to 1.3465 on softer USD as UK Awaits new PM
- GBP/USD attracts some dip-buyers during the Asian session amid a modest USD downtick.
- The optimism over the UK’s fiscal outlook supports the GBP and contributes to the bounce.
- Escalating US-Iran tensions, inflation fears, and Fed hike bets should help limit USD losses.
The GBP/USD pair rebounds around 30 pips from the Asian session low on Monday, snapping a two-day losing streak amid a modest US Dollar (USD) downtick. Spot prices, however, remain well below a two-month high, touched last Wednesday, as escalating US-Iran tensions and reviving hawkish US Federal Reserve (Fed) expectations help limit USD losses.
In fact, the US completed a ninth straight night of strikes against Iran on Sunday aimed at degrading Iranian military capabilities used to attack commercial vessels and civilian mariners transiting the Strait of Hormuz. In response, Iran fired ballistic missiles and one-way attack drones targeting US allies in the region, with Bahrain, Jordan, Kuwait, and Iraq reporting a new wave of attacks. This, in turn, prompts traders to continue pricing in the geopolitical risk premium, which might continue to benefit the safe-haven Greenback.
Meanwhile, rising US-Iran hostilities, along with the closure of the Strait of Hormuz, lift crude oil prices to a fresh high since June 12, fueling inflation fears and bolstering bets for at least one interest rate hike by the Fed in 2026. This further validates the near-term positive outlook for the USD and warrants some caution before placing fresh bullish bets on the GBP/USD pair. The downside for the British Pound (GBP), however, seems limited amid the receding domestic political risks and the optimism over the UK’s fiscal outlook.
Andy Burnham will become the UK's seventh Prime Minister in a decade on Monday and is expected to appoint a fiscally conservative finance minister, such as Shabana Mahmood. The market attention will then shift to the UK monthly employment details on Tuesday, followed by the UK CPI on Wednesday. The crucial data might influence the GBP, which, along with geopolitical developments, should contribute to infusing volatility around the GBP/USD pair.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | -0.12% | -0.02% | -0.07% | -0.12% | -0.16% | 0.01% | |
| EUR | 0.00% | -0.08% | 0.00% | -0.07% | -0.11% | -0.17% | 0.02% | |
| GBP | 0.12% | 0.08% | 0.09% | 0.02% | -0.03% | -0.08% | 0.08% | |
| JPY | 0.02% | 0.00% | -0.09% | -0.05% | -0.10% | -0.11% | 0.01% | |
| CAD | 0.07% | 0.07% | -0.02% | 0.05% | -0.04% | -0.06% | 0.06% | |
| AUD | 0.12% | 0.11% | 0.03% | 0.10% | 0.04% | -0.02% | 0.14% | |
| NZD | 0.16% | 0.17% | 0.08% | 0.11% | 0.06% | 0.02% | 0.14% | |
| CHF | -0.01% | -0.02% | -0.08% | -0.01% | -0.06% | -0.14% | -0.14% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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