The pound sterling is gaining in value as the war in the Middle East deescalates

The pound sterling (GBP) is trading slightly higher against its major currencies, rising 0.12% to almost 1.3242 in Wednesday’s Asian session. The British currency is gaining as demand for riskier assets improves after Iran announced its desire to end its war with the United States (US).

Iranian President Masoud Pezeshkian told European Union (EU) Council President António Costa on Tuesday that his country is ready to end the war with the US but needs some guarantees, according to Iran’s state news agency. Read more…

GBP/USD has been falling sharply for five days on Iran’s peace hopes ahead of key US data

The GBP/USD pair rose 0.32% on Tuesday in volatile trading, closing near 1.3230 after swinging between a session low near 1.3160 ​​and a high near 1.3260. The gain snapped a five-day losing streak, although the rebound was unconvincing and left the price well below key moving averages. Tuesday’s candle cut a long lower wick, suggesting downside buying interest is emerging near the bottom of the pair’s recent range, but the picture remains dominated by a broader pullback from January highs at 1.3870 to a recent low at 1.3010.

The rebound was driven by a wave of risk appetite after multiple reports suggested the US-Iran conflict may be close to resolution. The Wall Street Journal reported that President Donald Trump told advisers he was willing to end hostilities even if the Strait of Hormuz remained largely closed, while the New York Post later reported that he believed the war would likely end soon and other countries would take the lead in reopening the strait. Markets also picked up on the comments of Iran’s president, who said during a phone call with European officials that Iran was open to peace; however, his remarks were largely taken out of context, given his restricted control over Iranian military operations and the fact that Iran’s five-point list of demands has not changed significantly. Read more…

GBP/USD rises as delicate US jobs data offsets risk aversion

The pound sterling (GBP) posted a modest gain on Tuesday after Iran’s IRGC threatened to attack US companies from April 1, dampening market sentiment, while the US dollar (USD) recovered some of its earlier losses. Nevertheless, this move was short-lived as GBP/USD traded at 1.3190, up 0.04%.

Iranian state media reported that Iran’s Islamic Revolutionary Guard Corps (IRGC) would target American companies in the region in retaliation for attacks on Iran. Some of the targeted names include Microsoft, Apple, Google, Intel and Boeing among the 18 companies warned by the IRGC. Read more…