Pound Falls Amid Middle East Tensions and US Payrolls Anticipation

The British pound has edged lower against both the euro and U.S. dollar on Friday due to concerns over Middle East developments and anticipation of the closely watched U.S. payrolls report.

Investors are cautious about diplomatic efforts to end the Iran war and reopen the Strait of Hormuz, particularly after an attack by Yemen's Houthis on southern Saudi Arabia wounded 11 civilians on Thursday. Brent crude futures have been slightly lower at $82.16 per barrel.

The U.S. nonfarm payrolls are forecast to have risen by 80,000 last month, which could provide clues about the Federal Reserve's interest rate path ahead.

Monex Europe's head of macro research, Nick Rees, noted that a big sterling catalyst is actually for everything else in the world to calm down, allowing attention to switch back to UK fiscal concerns.