Forex
GBP/USD Slumps as US-Iran Tensions Mount and UK Jobs Data Disappoint
The British Pound (GBP) declined against the US Dollar (USD) on Tuesday due to increased uncertainty in the Middle East. The GBP/USD exchange rate fell to around $1.3527, below its opening levels.
Tensions between the US and Iran escalated as the 60-day Memorandum of Understanding expired without a permanent peace agreement or extension. This led to a surge in Brent crude prices above $90 a barrel and a strengthening of the USD.
The Pound faced additional pressure after UK employment figures showed a loss of momentum across the labour market. The unemployment rate remained at 4.9% in the three months to June, missing expectations for a decline to 4.8%. Employment growth slowed sharply, while real wage growth eased.