The British Pound is losing a few inches on market caution ahead of US-Iran deal updates

GBP/USD is losing ground after registering tiny gains the previous day, trading around 1.3400 during Asian hours on Tuesday. The pair is losing ground as the US dollar (USD) receives support from market caution as US-Iran peace talks continue to develop.

Since neither Washington nor Tehran has released the official text of the agreement, major shipping lines are delaying rerouting ships through the strategic waterway until there is full transparency. Read more…

British Pound Sterling Round-trip Peace Rally Ahead of Fed

GBP/USD started the up-to-date week with a pointed rise in risk towards 1.3450 as the US-Iran ceasefire and the reopening of the Strait of Hormuz resulted in a decline in oil prices and a rise in risk-sensitive currencies. The entire move then unraveled, leaving the pair back near 1.3400, almost exactly where it started. The relief was genuine but shallow, and the dollar did the rest quietly at Wednesday’s Federal Reserve (Fed) meeting.

The agreement that sparked this move is groundbreaking on paper, but the fine print raises skepticism. These are the preliminary framework: an extension of the ceasefire by 60 days in connection with the Iranian nuclear program postponed until later talks and the formal signing of the agreement only on Friday. Crude oil fell nearly 5%, but the broader risk response was only moderate, with most of the buying already taking place last week. Read more…