GBP/USD shows a decline to approximately 1.3300 during the early Asian session on Monday. Trump pledged to exert influence over Iran’s new leader, heightening concerns about an extended conflict. The US NFP unexpectedly decreased by 92,000 in February, while the Unemployment Rate increased to 4.4%. The GBP/USD pair sees some selling interest around 1.3300 in the early Asian session on Monday. Escalating hostilities in the Middle East enhance the appeal of a safe-haven currency like the US Dollar against the Pound Sterling. Market participants will look for additional insights from the US February Consumer Price Index inflation report later on Wednesday.
Iran appointed Mojtaba Khamenei as the new supreme leader shortly after the death of his father, Ayatollah Ali Khamenei, due to US-Israeli strikes, according to the source. Meanwhile, US President Donald Trump stated that he would have an impact on Iran’s next supreme leader, asserting that anyone chosen for the position without Washington’s consent is “not going to last long.”
Indicators of an extended conflict in the Middle East persist in bolstering the Greenback, posing challenges for the major pair in the short term. “The dollar is the biggest beneficiary in the current environment, given the USD’s safe haven status and the US’ position as a net energy exporter,” stated Carol Kong. “The extent to which the dollar will rise from this point hinges on the severity and length of the conflict, which continues to be highly unpredictable.”
Conversely, a lackluster US employment report could limit the decline for GBP/USD. In February, US Nonfarm Payrolls decreased by 92,000, contrasting with the market expectation of an increase of 59,000 and the adjusted January figure of 126,000. The Unemployment Rate increased to 4.4% during the same period as job losses were observed in critical sectors.