GBP Rises on Oil Prices, Risk Appetite Ahead of Fed Decision
The British Pound (GBP) rose by 0.20% on Friday due to the decline in oil prices, which weighed on the US Dollar. This development came as market participants ignored the escalating tensions between the US and Iran. Despite registering daily gains, the GBP/USD is poised to finish the week with losses of nearly 0.70%. The improvement in risk appetite was fueled by Pakistan's efforts to help resume talks between the US and Iran.
US President Trump revealed that China and Russia are not providing or selling weapons to Iran on his Truth Social network. However, an article in the Wall Street Journal stated that 'Trump is losing patience over an Iran war with no clear end in sight,' which could lead to further escalation, as per some US officials.
The manufacturing activity in the US showed signs of easing, as the Manufacturing PMI index fell from 53.9 to 53.8, below estimates for a 54.5 expansion. In contrast, the Services PMI improved from 51.2 to 53.6, crushing forecasts of 51, boosted by the World Cup hosted in the country.