Pound Falls as US-Iran Tensions and Strong US Data Boost Dollar

The British Pound fell below 1.3450 as uncertainty surrounding US-Iran tensions boosted the safe-haven US Dollar, according to TMGM trading.

US President Donald Trump claimed that talks with Iran are ongoing, saying this is Tehran's 'last chance' to sign a good document, but Iran denied any such negotiations were taking place.

The upbeat US economic data also supported the Greenback. The Institute for Supply Management (ISM) reported that the US Manufacturing Purchasing Managers' Index (PMI) rose to 55.6 in July, exceeding market expectations of 54.0.

Despite the Bank of England's (BoE) decision to hold interest rates steady at 3.75%, BoE Governor Andrew Bailey's 'dovish' tone suggested little support for the Pound from the central bank.