Pound Sterling gains against US Dollar as Iran optimism prompts risk-on mood

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The Pound Sterling (GBP) outperforms the US Dollar (USD), while trading mixed against other currency peers, during the European trading session on Tuesday.

The Pound Sterling trades higher to near 1.3535 against the US Dollar amid risk-on mood.
The US and Iran could schedule second round of talks.
Investors await the US PPI data, and BoE Bailey’s remarks later in the day.

The Pound Sterling (GBP) outperforms the US Dollar (USD), while trading mixed against other currency peers, during the European trading session on Tuesday. The GBP/USD pair posts a fresh six-week high around 1.3535 as the US Dollar (USD) faces selling pressure as hopes of second round of negotiations between the United States (US) and Iran have prompted hopes of a permanent ceasefire.

Pound Sterling Price Today

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

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.21%	-0.22%	-0.22%	-0.22%	-0.13%	-0.44%	-0.39%
EUR	0.21%		-0.01%	-0.02%	-0.01%	0.08%	-0.24%	-0.20%
GBP	0.22%	0.00%		0.00%	0.01%	0.08%	-0.22%	-0.19%
JPY	0.22%	0.02%	0.00%		0.02%	0.11%	-0.20%	-0.16%
CAD	0.22%	0.00%	-0.01%	-0.02%		0.08%	-0.21%	-0.18%
AUD	0.13%	-0.08%	-0.08%	-0.11%	-0.08%		-0.31%	-0.27%
NZD	0.44%	0.24%	0.22%	0.20%	0.21%	0.31%		0.03%
CHF	0.39%	0.20%	0.19%	0.16%	0.18%	0.27%	-0.03%

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 British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Negotiating teams from the US and Iran could return to Islamabad this week, according to a Reuters report. Over the weekend, US-Iran first round of talks ended without a breakthrough as Vice President (VP) JD Vance-led team remained non-negotiable on Iran giving up its nuclear ambitions and the reopening of the Strait of Hormuz.

Hopes of US-Iran second round of talks have improved market sentiment. S&P 500 futures extend Monday’s gains to 6,900 in the overnight session. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades lower around 98.00, the lowest level seen in over six weeks.

On the domestic front, investors seek fresh cues on the Bank of England’s (BoE) monetary policy outlook, which are expected to be found from Governor Andrew Bailey’s remarks in a panel discussion at Columbia University at 16:05 GMT.

This week, market participants will focus on the monthly Gross Domestic Product (GDP) data for February, which will be released on Thursday.

In the US, Investors await the Producer Price Index (PPI) data for March, which will be published at 12:30 GMT.

Economic Indicator

BoE's Governor Bailey speech

Andrew Bailey is the Bank of England's Governor. He took office on March 16th, 2020, at the end of Mark Carney's term. Bailey was serving as the Chief Executive of the Financial Conduct Authority before being designated. This British central banker was also the Deputy Governor of the Bank of England from April 2013 to July 2016 and the Chief Cashier of the Bank of England from January 2004 until April 2011.