GBP Weakens Amid Iran Deal Uncertainty and Soft US Data

The British Pound (GBP) continues to weaken against the US Dollar (USD), despite hopes of a potential deal between the US and Iran. The GBP/USD pair has drifted lower to near 1.3460 during early European trading hours on Thursday, as conflicting rhetoric from both sides fuels market concerns.

US President Donald Trump stated that he had 'very productive talks with Iran', while Iranian Deputy Foreign Minister Kazem Gharibabadi said negotiations between Iran and Oman on reopening the Strait of Hormuz have continued for over three weeks and produced broad agreement. However, an Iranian official denied any current talks with Washington.

The US Initial Jobless Claims report is set to be released later on Thursday, which could potentially undermine the Greenback and boost the GBP/USD pair. Weaker-than-expected US economic data has also been a concern, with employment in the private sector increasing by 44K in July, below market consensus of 70K.