Pound Weakens Amid US-Iran Uncertainty

The British Pound weakened against the US Dollar on Tuesday, dropping below 1.3450 due to rising uncertainty surrounding talks between the US and Iran.

US President Donald Trump claimed that negotiations with Iran are ongoing, saying this is Tehran's 'last chance' to sign a good document.

Tehran denied that talks with the US were taking place, instead stating that their current focus was on negotiations with Oman over the Strait of Hormuz.

The upbeat US economic data also provided support to the Greenback and created headwinds for the GBP/USD pair. The Institute for Supply Management's (ISM) Manufacturing Purchasing Managers' Index (PMI) rose to 55.6 in July, beating market expectations.