GBP May Gain as Slow US Growth Weighs on Dollar
The Pound (GBP) exchange rate against the US Dollar (USD) has been rangebound in recent days, but analysts believe that slower US growth could favour the GBP.
This comes as concerns over new US economic sanctions on Iran have led to renewed trade tensions between Washington and Beijing.
The latest round of restrictions targets international entities that continue doing business with Iran, which could reignite friction between the world's two largest economies. China serves as Tehran's primary crude oil customer, and the move has prompted Beijing to pledge to take all necessary steps to safeguard Chinese interests.
The resulting uptick in the US Dollar was modest, however, as USD sentiment remains suppressed by the outlook for US inflation and government intervention in the bond market.