GBP Slips as Oil Fears Spark Safe-Haven Demand for USD

The British Pound (GBP) slipped by 0.07% against the US Dollar (USD) on Tuesday, as the US Treasury yields rose above 5% for the first time since 2007.

The escalation of the Middle East conflict has sparked fears of an oil supply shortage, sending crude oil benchmarks Brent and West Texas Intermediate (WTI) up by over 2.40% and 1.10%, respectively.

As a result, investors are flocking to the US Dollar as a safe-haven asset, causing it to gain against the GBP/USD pair.

According to UOB's Quek Ser Leang, further weakness in the British Pound is expected, with a major support level at 1.3410 potentially being tested.