GBP/USD Slides Toward 1.3400 as US Strikes on Iran Fuel Safe-Haven Dollar Demand

GBP/USD Drops Below 1.3410 as Risk-Off Mood Supports US Dollar

GBP/USD extends losses for the second straight session, dropping toward the 1.3400 level in Monday’s Asian trading, pressured by broad safe-haven demand for the US Dollar (USD) amid renewed geopolitical turmoil in the Middle East.

US Strikes Iran's Nuclear Facilities, Risk Sentiment Sours

The sharp shift in sentiment follows the US military's weekend bombing of three Iranian nuclear sites, escalating the Israel–Iran war. US President Donald Trump announced that Iran’s primary nuclear facilities had been “completely destroyed,” and warned of even stronger retaliation unless Iran agrees to peace.

This triggered intensified demand for safe-haven assets, especially the Greenback, to the detriment of risk-sensitive currencies like the British Pound (GBP).

Pound Pressured by Disappointing Retail Sales

Adding further downside pressure to GBP/USD, UK Retail Sales fell 2.7% MoM in May, significantly underperforming expectations. The data signals a slowdown in consumer spending, complicating the Bank of England’s inflation management amid weak domestic momentum.

Market Awaits UK and US PMIs for June

Looking ahead, traders will focus on the preliminary June Purchasing Managers Index (PMI) data from both the UK and US. Diverging growth outlooks and central bank expectations could further widen interest rate differentials, influencing the next GBP/USD directional move.

Internal Linking Suggestions (for Tredu.com):

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