The British Pound has slipped below the 1.3500 level against the US Dollar, trading around 1.3470 during Friday’s Asian session as escalating Middle East tensions drive a flight to safety. Fresh US military strikes against Iran have triggered risk-off sentiment across global markets, putting pressure on the Cable and benefiting traditional safe-haven assets. Traders are now turning their attention to the preliminary Michigan Consumer Sentiment Index for July, due for release later today, which could provide additional direction for the pair. The weakening comes as investors reassess exposure to risk-sensitive currencies amid heightened geopolitical uncertainty. Currency markets remain volatile as participants monitor developments in the region and evaluate potential implications for global trade and energy markets. The Dollar’s strength reflects its safe-haven status during periods of international instability, while sterling faces additional headwinds from broader risk aversion.
FXnCO Insight
Traders should watch 1.3450 as critical support for GBP/USD while maintaining tight risk management amid elevated geopolitical volatility and upcoming US consumer sentiment data.
Source: FXStreet