Finance News

Story: Pound Plummets as Fed Tightens Policies and Iran Sanctions Impact Currency Markets

By Maheen Hernandez

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Geopolitical Anxiety Hitting Forex Hard. Currency traders hate uncertainty. That's basically the first rule of forex.

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UK Government Silence Fueling Volatility. No official statements have come from the UK government about how it plans to respond to the…

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The British pound is falling. It's losing ground against the U.S. dollar, and the reasons aren't hard to spot — a hawkish Federal Reserve on one side, renewed Iran sanctions on…

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Dollar strength is the big story right now. Investors are bracing for tighter U.S. monetary policy, and when the Fed looks like it's heading toward higher interest rates, money…

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Iran sanctions are adding a whole different kind of pressure.

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The reimplementation of sanctions on Iran hits global energy markets in ways that ripple outward fast. Iran is a significant oil producer.

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Currency traders hate uncertainty. That's basically the first rule of forex. And right now there's uncertainty stacked on top of uncertainty — U.S.

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The UK's own economic picture isn't helping. Inflationary pressures haven't gone away, and post-Brexit trade adjustments are still grinding through the system.

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Geopolitical shocks tend to amplify whatever anxieties are already baked into the market. Iran sanctions aren't just an energy story — they're a signal to traders that the global…

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See also: Dollars Future Hangs on Treasury Yields and Fed Credibility Amid Market Turmoil

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No official statements have come from the UK government about how it plans to respond to the pound's slide. None. That silence matters more than it might seem.

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When governments stay quiet during currency pressure, markets fill the vacuum with speculation.

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The Fed's next moves will be closely watched. Any signal about the pace of future rate hikes could push the dollar even higher, squeezing the pound further.

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What's clear is that the pound's near-term trajectory is tied to forces largely outside the UK's direct control. U.S. monetary policy decisions happen in Washington.

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See also: BCA Research Recommends Selling U.S. Dollar for Stronger Indian Rupee

The Currency Analytics

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