GBP/USD climbs to 1.3420 on Monday as improved global risk appetite weakens the US Dollar, offsetting recent concerns over an AI bubble and strong US labor market data.
GBP/USD has bounced from Friday's lows below 1.3350 to the 1.3420 area as investors sell the Dollar in an improved risk mood, helped by news of progress in US-Iran peace talks. Last Thursday's BoE hike to 4% with a hawkish tilt and Governor Bailey open to further tightening adds support. Counterweight: strong US NFP data and Fed December hike hopes could limit Dollar dips, with Tuesday's US CPI the key test.
News of progress in US-Iran peace negotiations is keeping Oil prices steady at levels near two-month lows, easing supply fears. This is a passing contextual mention, with no direct price-driving estimate for crude beyond the stability note.
The British Pound is trading at 1.3420, recovering from Friday's lows below 1.3350 as investors shift away from the US Dollar. Improved risk sentiment, driven by progress in US-Iran peace negotiations, has bolstered the Pound, which also retains support from the Bank of England's recent interest rate hike to 4%.
Investors are selling the Dollar in favour of riskier currencies amid an improved risk mood, helped by progress in US-Iran peace talks, while the Pound also draws support from the Bank of England's quarter-point rate hike to 4% last Thursday and its hawkish tone.
Strong US data is Dollar-supportive: October NFP beat expectations and Fed policymakers flagged high inflation pressures, boosting December rate-hike hopes. Tuesday's US CPI, expected to show accelerating October prices, is the key risk.