Pound climbs above $1.34 as Trump delays Iran energy infrastructure strikes
Investing.com -- The British pound rose above $1.34 on Monday, recovering from earlier lows around $1.32, after U.S. President Donald Trump announced a temporary delay of strikes against Iranian infrastructure following what he called "productive" discussions with Tehran.
UK equities and global stocks turned higher following the announcement, while Brent oil futures dropped 9.8% to $101.26 a barrel. U.S. West Texas Intermediate crude futures fell 8.9% to $89.46 a barrel as of 13:10 GMT. Spot gold declined 1.05% to $4,444.17 an ounce, while gold futures dropped 2.5% to $4,492.86/oz.
"Based on the tenor and tone of these in depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the department of war to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings and discussions," Trump wrote in a post on Truth Social.
Separately, Trump said on Fox Business that Iran wants to make a deal badly and it could happen within five days or sooner.
Iran’s Fars News Agency, citing a source, said there are no direct or indirect communications with the United States. A senior security official called Trump’s comments "psychological warfare," acusdcording to Tasnim News Agency.
Last week, UBS said in a note that the British pound is likely to remain under pressure against the U.S. dollar in the near term, lowering its June forecast to 1.34.
UBS forecasts GBP/USD at 1.34 for June, 1.37 for September, and 1.40 for December and March 2027. The firm noted that resistance stands around 1.35, with stronger resistance around recent highs of 1.37-1.38.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Nvidia falls to its lowest valuation in 14 years! "Super bull" Tom Lee calls for bottom fishing, retail investors are buying more as it drops, but Wall Street is divided
After the market opened on Thursday, retail investors went against the trend and bought up Nvidia, with net purchases reaching $111 million in just half an hour, setting a record for the same period. Investors such as Tom Lee have publicly supported the company, with institutions optimistic about strong order backlogs extending to 2028, robust revenue growth, and opportunities created by declining valuations. Meanwhile, institutions like Bernstein and Goldman Sachs have become more cautious about Nvidia's outlook, with concerns focusing on management succession and technological leadership following Jensen Huang's departure.
Jane Street boosts Fidelity Bitcoin ETF stake 8x in Q3, trims BlackRock IBIT
From SpaceX to Anthropic, the market has new strategies for dealing with tech giants' IPOs
The market's response strategies to major listings are currently centered around "index inclusion expectations": the new regulations allow mega IPOs to be included in the six major indices within 15 days, triggering concentrated buying by passive funds. Investors are positioning themselves in advance and using options to hedge and amplify buying power. However, Anthropic has a free float of only about 6%; shares available for sale by employees on the first day and privately placed shares with no lock-up period may create supply pressure. On the other hand, index arbitrageurs are facing a rare opportunity.
Nvidia Q3 Earnings Preview: Revenue Expectations and Key Metrics to Watch
Crypto prices
More
