GBP/USD meets fresh supply during Thursday’s Asian session. The rate is once again moving away from the weekly high that was near the 1.3345 area reached the previous day. Spot prices fall to mid-1.3200 following comments from US President Donald Trump. The comments put the brakes on a two-day recovery from a four-month low set on Tuesday.
Addressing the nation, Trump repeated the 2-3 week deadline. He also threatened to hit Iran’s energy infrastructure if no agreement was reached. Trump added that negotiations with Iran are going well. However, Tehran quickly rejected these claims. Additionally, reports say that the United Arab Emirates (UAE) is pushing for military action to reopen the Strait of Hormuz. This fuels fears of greater tension in the Middle East.
The latest developments are sending oil prices soaring, reviving inflation fears and boosting hopes that the US Federal Reserve (Fed) will raise interest rates. Moreover, a modern wave of risk-averse global trading is helping the safe-haven US dollar (USD) regain positive traction after a two-day year-to-date decline. This, in turn, is seen as a key factor putting downward pressure on the GBP/USD pair.
Meanwhile, the UK economy is highly vulnerable to energy price shocks related to the war in Iran. Moreover, the hawkish signal from the Bank of England (BoE) about a potential escalate in interest rates already in April in the face of fears about inflation increases the risk of a deterioration in the situation in the economy. This further weakens the British Pound (GBP) and provides support for a resumption of the recent decline in GBP/USD seen over the last two months or so.
Today’s US dollar price
The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the Australian dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.29% | 0.37% | 0.30% | 0.13% | 0.59% | 0.52% | 0.28% | |
| EUR | -0.29% | 0.08% | -0.02% | -0.18% | 0.30% | 0.24% | -0.02% | |
| GBP | -0.37% | -0.08% | -0.06% | -0.24% | 0.22% | 0.16% | -0.10% | |
| JPY | -0.30% | 0.02% | 0.06% | -0.16% | 0.29% | 0.22% | -0.02% | |
| BOOR | -0.13% | 0.18% | 0.24% | 0.16% | 0.44% | 0.37% | 0.13% | |
| AUD | -0.59% | -0.30% | -0.22% | -0.29% | -0.44% | -0.06% | -0.34% | |
| NZD | -0.52% | -0.24% | -0.16% | -0.22% | -0.37% | 0.06% | -0.26% | |
| CHF | -0.28% | 0.02% | 0.10% | 0.02% | -0.13% | 0.34% | 0.26% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select 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).
