The sterling pound descends against the US dollar as the dollar wins by tensions between the US and Iran

• The sterling pound falls below 1,3400 against the US dollar amid increasing tensions between the US and Iran.
• The feeling of the market becomes a verso to risk as the US attacks Iran’s nuclear sites.
• Investors expect the preliminary data of the United Kingdom PMI and the US for June.

The sterling pound (GBP) collapses to about 1,3370 against the US dollar (USD) during the European negotiation hours on Monday. The GBP/USD torque weakens as investors rush safe refuge assets, after tensions escalation between USA (Ee. Uu.) And Iran.

The demand for the US dollar as an active refuge has increased, with The US dollar index (DXY) reaching a new maximum of three weeks around 99.40.

During the European session, Iran threatened to retal against the unexpected US attack to Tehran’s three nuclear facilities during the weekend.

An Iranian army spokesman, Ebrahim Zolfaqari, said that the recent hostile action of the US expanded the scope of the legitimate objectives for the Armed Forces of Iranadding that the US should expect serious consequences for their actions.

During the weekend, US president Donald Trump said in Truth. Social that Washington’s military forces have successfully demolished Iranian nuclear facilities: Fordow, Natanz and Isfahan. Trump’s statement that Tehran nuclear sites have been destroyed has been questioned, since Israeli officials have declared that Iran managed to transfer their uranium reserves before the attack, according to the New York Times.

Meanwhile, the Iranian Parliament has approved the proposal to close the Ormuz Strait to the Supreme National Security Council of Iran, a movement that could potentially decrease the global oil supply, Press TV of Iran reported.

The optimism of the preliminary PMI of the United Kingdom fails to strengthen sterling pound against the US dollar

• Although investors have backed the US dollar against the sterling pound, it is surpassing its other peers, after the publication of the preliminary PMI data of the United Kingdom Global (UK) for June, which were better than projected. The PMI report showed that the general business activity grew at a faster rate than expected, driven by better performance in the service and manufacturing sectors. The compound PMI was 50.7, above the estimates of 50.5 and the previous publication of 50.3.
• In the front of monetary policy, the BOE has maintained a guide of “gradual and careful monetary loosening” on Thursday after the decision on interest rates in which it maintained stable loan rates at 4.25%.
• The governor of the BOE, Andrew Bailey, said at a press conference that interest rates remain in a “gradual descending path.” Bailey also indicated that the Central Bank will closely monitor the conditions of the labor market that are being softened and the increase in energy prices amid the growing tensions in the Middle East, which will be key risks to the economy.
• In the US, investors also expect the preliminary data of the US PMI of the United States for June, which will be published at 13:45 GMT. Financial market participants will pay special attention to the impact of tariffs on input costs.
• The governor of the Federal Reserve (Fed), Christopher Waller, argued on Friday in favor of a reduction of interest rates at the July policy meeting. Waller declared that he expects a limited impact of tariffs on inflation and warns of cracks in the labor market, which promotes the need for an expansion of monetary policy. “Tariffs should represent a unique level effect on prices and not be a persistent impulse to inflation,” Waller said and added, “the Fed should not wait for the labor market to collapse to cut rates“Fxstreet Fedtracker, who measures the tone of the speeches of Fed officials on a moderate to aggressive scale from 0 to 10 using a personalized AI model, described Waller’s words as moderate with a score of 3.4.

Technical Analysis: The sterling pound is maintained below the 20 -day EMA

The sterling pound falls below 1,3400 against the US dollar on Monday. The short -term trend of the GBP/USD torque remains bassist since it remains below the 20 -day exponential (EMA) mobile average, which is around 1,3477.

The 14-day relative force (RSI) index oscillates within the range of 40.00-60.00, near the neutral level of 50, indicating a short-term lateral yield.

Looking down, the minimum of May 16 around 1,3250 will act as a key support zone. On the positive side, the maximum of three years around 1,3630 will act as a key barrier.