Pound Steadies Amidst Geopolitical Tensions and Weak US Data
The British Pound has steadied its position amidst rising geopolitical tensions in the Middle East. The GBP/USD exchange rate is currently trading at 1.35846, following a volatile day of trading.
US President Donald Trump's statement that there are no talks ongoing with Iran and that the US naval blockade remains in full force has contributed to the increasing uncertainty. In response, Iran's Foreign Minister said that the US goal from the war is that Iran surrenders, adding that 'America is begging to negotiate with us now,' according to Al Jazeera.
Data released yesterday showed a decline in US housing starts and industrial production. The Federal Reserve reported a 12.4% monthly decrease in housing starts for July, while industrial production dipped from the expected 0.3% to 0.2% month-over-month.
The UK's jobs data revealed weakness, with the unemployment rate exceeding estimates at 4.8% and coming in at 4.9% in June. The Bank of England (BoE) is set to release its Consumer Price Index (CPI) data on Wednesday, which is expected to show a rise in headline inflation to 2.9% year-over-year.