British Pound declines against US Dollar as US-Iran deal optimism fades
The British Pound is down 0.13% to near 1.3415 against the US Dollar (USD) during the European trading session on Thursday.
  • The British Pound falls to near 1.3415 against the US Dollar as optimism over US-Iran deal fades.
  • Iran’s Supreme Leader wants near-weapons-grade uranium to stay in Iran.
  • The UK preliminary S&P Global PMI unexpectedly contracts in May.

The British Pound is down 0.13% to near 1.3415 against the US Dollar (USD) during the European trading session on Thursday. The GBP/USD pair faces selling pressure as optimism towards the United States (US)-Iran deal fades, following comments from Iran’s Supreme Leader that near-weapons-grade uranium must stay in Iran.

The statement from Iran’s top leader is in contrast with Washington’s demand that Iran must surrender its uranium enrichment if it wants a deal.

Iran Supreme Leader’s comments regarding the retention of near-weapons-grade uranium have dampened the market sentiment. S&P 500 futures surrender its entire early gains and drops to near 7,400. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, bounces back swiftly to near 99.30.

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 Australian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.12% 0.05% 0.11% 0.14% 0.35% 0.24% 0.08%
EUR -0.12% -0.07% -0.02% 0.00% 0.21% 0.07% -0.06%
GBP -0.05% 0.07% 0.06% 0.06% 0.30% 0.17% 0.01%
JPY -0.11% 0.02% -0.06% -0.01% 0.24% 0.05% -0.04%
CAD -0.14% 0.00% -0.06% 0.00% 0.25% 0.10% -0.06%
AUD -0.35% -0.21% -0.30% -0.24% -0.25% -0.14% -0.31%
NZD -0.24% -0.07% -0.17% -0.05% -0.10% 0.14% -0.16%
CHF -0.08% 0.06% -0.01% 0.04% 0.06% 0.31% 0.16%

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).

On Wednesday, market mood turned risk-on after comments from US President Donald Trump signaled that a deal with Iran is around the corner. Trump said that Washington is in the “final stages” of finalizing a deal with Iran.

The British Pound is also facing pressure from weak preliminary United Kingdom (UK) S&P Global Purchasing Managers’ Index (PMI) data for May.

The data showed during the European trade that the UK Composite PMI surprisingly declined in May, as the service sector activity contracted. The Composite PMI arrived at 48.5, while it was expected to expand again, but at a moderate pace to 51.7 from April’s reading of 52.6. A figure below 50.0 is considered a contraction in the business activity.

Going forward, investors will focus on the UK Retail Sales data for April, which will be released on Friday.

Risk sentiment FAQs

In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.

Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.

The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.

The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.

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실시간 시세

이름 / 기호
차트
% 변동 / 가격
GBPUSD
1일 변동
+0%
0
EURUSD
1일 변동
+0%
0
USDJPY
1일 변동
+0%
0

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