The post GBP/USD surges toward 1.3400 as Iran ceasefire deflates the US Dollar appeared on BitcoinEthereumNews.com.

GBP/USD ripped higher on Tuesday as the US Dollar buckled under a wave of risk-on positioning triggered by President Trump’s announcement of a two-week ceasefire with Iran. The pair surged from the low 1.3200s into the upper 1.3300s, reclaiming ground above both the 50 and 200-period hourly moving averages in the process. The move was almost entirely a Dollar story. WTI Crude Oil cratered from above $106 to below $90 per barrel as traders, who had already been fading Trump’s deadline rhetoric throughout the session, piled into the selloff once the Truth Social post confirmed the pause. S&P 500 futures jumped over 1%, and the US Dollar Index (DXY) slid back toward 100.00 as the haven bid that had propped up the Greenback for weeks started to unwind. Can the Pound actually hold these levels? That is the uncomfortable question. Sterling’s rally on Tuesday was a function of Dollar weakness, not Pound strength. The UK’s own fundamentals look increasingly fragile. Final March services Purchasing Managers Index (PMI) data released earlier on Tuesday came in at 50.5, revised down from a flash estimate of 51.2 and a sharp drop from February’s 53.9. The composite reading fell to 50.3. S&P Global flagged the slowest services expansion in eleven months, with new work declining for the first time since November 2025 and input cost inflation hitting an eleven-month high on surging fuel and transportation bills. In short, the UK is flashing stagflation signals. Growth is stalling while costs are accelerating, and the Middle East conflict is the primary driver of both trends. The BoE’s impossible trade-off just got more complicated The BoE has held rates at 3.75% since December 2025, voting unanimously to stay put at the March meeting. Before the Iran war erupted, markets were pricing two to three cuts in 2026.…

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Filed under: News - @ April 8, 2026 12:28 am