GBP/USD advances as US Dollar softens on US-Iran talks, risk-on mood
GBP/USD advances on Wednesday and trades around 1.3630 at the time of writing, up 0.65% on the day, benefiting from the broad weakness of the US Dollar (USD).
  • The US Dollar falls after reports suggest Washington and Tehran are close to an agreement.
  • Easing geopolitical tensions reduce the risk premium linked to the Middle East and support risk appetite.
  • Markets now focus on the US ADP Employment Change report due later on Wednesday.

GBP/USD advances on Wednesday and trades around 1.3630 at the time of writing, up 0.65% on the day, benefiting from the broad weakness of the US Dollar (USD). The move comes as investors reduce demand for safe-haven assets following several reports pointing to diplomatic progress between the United States (US) and Iran.

According to Axios, US and Iranian representatives are close to reaching a memorandum of understanding aimed at ending the current conflict and opening a new phase of negotiations regarding Iran’s nuclear program. 

These developments are fueling a strong risk-on move across financial markets and reducing fears of major disruptions to global energy supply. Against this backdrop, the US Dollar Index (DXY) loses 0.71% and falls to 97.80, supporting major currencies against the US dollar, including the Pound Sterling (GBP).

On the UK side, elections for the Scottish Parliament and the Welsh Senedd scheduled for Thursday continue to maintain some caution around British assets. According to Commerzbank analysts, a poor performance by the Labour government could increase political risk in the United Kingdom (UK).

Latest UK macroeconomic data nevertheless remain solid. The S&P Global UK Services Purchasing Managers Index (PMI) was revised higher to 52.7 in April, from a preliminary estimate of 52 and after 50.5 in March. The S&P Global UK Composite PMI also rose to 52.6 from 50.3 previously, reinforcing the near-term economic outlook for the United Kingdom.

Investors are now awaiting the release of the ADP Employment Change report later in the day.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.67% -0.61% -1.17% -0.11% -0.92% -1.44% -0.59%
EUR 0.67% 0.06% -0.48% 0.59% -0.25% -0.80% 0.09%
GBP 0.61% -0.06% -0.53% 0.53% -0.30% -0.85% 0.05%
JPY 1.17% 0.48% 0.53% 1.06% 0.23% -0.31% 0.61%
CAD 0.11% -0.59% -0.53% -1.06% -0.81% -1.34% -0.46%
AUD 0.92% 0.25% 0.30% -0.23% 0.81% -0.52% 0.35%
NZD 1.44% 0.80% 0.85% 0.31% 1.34% 0.52% 0.89%
CHF 0.59% -0.09% -0.05% -0.61% 0.46% -0.35% -0.89%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick 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).

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Name / Symbol
Diagramm
% Änderung / Preis
GBPUSD
1 T Änderung
+0%
0
EURUSD
1 T Änderung
+0%
0
USDJPY
1 T Änderung
+0%
0

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