Sterling trades cautiously on slowing US-Iran peace

The GBPUSD pair trades cautiously near Tuesday’s low around 1.3450 in the early European trade on Wednesday. The Cable is under pressure as investors turn cautious regarding the longevity of the ceasefire between the US and Iran, following Washington’s attacks on southern Iran. On Tuesday, Iran condemned US attacks on Iranian boats and its missile-launching strikes, which were described as “defensive” moves by the US Central Command. The same day, Iran’s Islamic Revolutionary Guard Corps (IRGC) also reported that it identified a hostile aircraft entering its airspace and intercepted an MQ-9 drone. Meanwhile, comments from Secretary of State Marco Rubio that the deal finalisation with Iran may take a few days have also dashed hopes of an early breakthrough in US-Iran negotiations. In addition to geopolitical tensions, declining UK gilt yields due to eased hopes of a near-term interest rate hike by the Bank of England are also hurting the British Pound. On Tuesday, 10-year UK gilt yields tumbled to 4.82%, the lowest level seen in over a month. The DXY Dollar Index trades flat around 99.00, with investors awaiting the US Personal Consumption Expenditure Price Index (PCE) data for April scheduled on Thursday. (Source: OANDA) The post Sterling trades cautiously on slowing US-Iran peace appeared first on Financial Mirror.