Pound dollar:
GBP/USD remains weak after posting losses in the previous session, trading around 1.3280 in Asian time on Wednesday. This decline may be due to risk aversion due to rising geopolitical tensions in the Middle East, hurting the risk-sensitive British pound (GBP) and GBP/USD pair.
Iran fired more than 200 ballistic missiles toward Israel on Tuesday, shortly after the United States warned that an attack was imminent. According to Bloomberg, the Israel Defense Forces announced that several missiles were intercepted in the West Bank, killing one person.
Israeli Prime Minister Benjamin Netanyahu has vowed to retaliate against Iran following Tuesday’s missile attack. In response, the Iranian government warned that any retaliatory attack would cause “tremendous destruction,” raising concerns that the conflict could escalate.
The US dollar (USD) receives support from Federal Reserve Chairman Jerome Powell’s latest speech. Chairman Powell said the central bank would cut interest rates in stages over time. Fed Chairman Jerome Powell added that the recent half-point rate cut should not be taken as a sign of similarly aggressive action in the future, noting that future rate changes are likely to be more modest.
On Tuesday, Bank of England (BoE) Governor Megan Green warned that Britain’s consumption recovery could trigger a new wave of inflation. However, Bloomberg reported that Green said further rate cuts were likely because prices were “moving in the right direction.”
Trading Recommendation: Keep an eye on the 1.3300 level and consider a buy position if it consolidates above or a sell position if it rebounds.
Source: FreshForex
https://forexnews.pro/2024/10/02/gbpusd-stays-below-1-3300-amid-geopolitical-tensions/
