{"id":29778,"date":"2026-03-04T07:01:03","date_gmt":"2026-03-04T07:01:03","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/29778\/"},"modified":"2026-03-04T07:01:03","modified_gmt":"2026-03-04T07:01:03","slug":"against-major-peers-the-pound-weakens-slipping-0-3-to-about-1-3360-versus-the-dollar-in-europe","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/29778\/","title":{"rendered":"Against major peers, the pound weakens, slipping 0.3% to about 1.3360 versus the dollar in Europe"},"content":{"rendered":"Pound Sterling fell against major currencies, dropping 0.3% to about 1.3360 versus the US Dollar during European trading on Tuesday. GBP\/USD moved lower as risk-off mood grew after war in the Middle East involving the United States, Israel, and Iran, reducing demand for riskier assets.\n\nNomura said higher oil prices and firmer UK data have made the Bank of England\u2019s March rate decision more evenly poised. Nomura still projects a 25 bps cut in March and a further cut in June, with the outcome depending on upcoming data and changes in Middle East risks and energy prices.\n\n<h3>Geopolitical Risk And Sterling Pressure<\/h3>\nLooking back to this time in 2025, we recall the significant risk-off sentiment driven by the US-Israel conflict with Iran. This uncertainty pushed the Pound down to near 1.3360 against the dollar as demand for riskier assets faded. The market environment was defined by geopolitical anxiety.\n\nAt that point in early 2025, oil prices had spiked to over $95 a barrel, fueling inflation fears and making the Bank of England hesitant. Today, with geopolitical tensions having eased, Brent crude has stabilized around a much healthier $78 a barrel. This has been a key factor in bringing UK inflation down from its 2025 peak to the latest reading of 2.8%.\n\nThis contrasts sharply with the Bank of England\u2019s dilemma last year, where the March 2025 decision was a close call, ultimately resulting in them holding rates due to those inflation risks. Now, the landscape is entirely different, with markets pricing in an 85% probability of a 25 basis point rate cut later this month. The case for a cut is now much clearer than it was a year ago.\n\nFor derivatives traders, this means the nature of the trade has changed. Implied volatility on GBP\/USD options is lower now, as the BoE&#8217;s path is more predictable than it was during the 2025 uncertainty. Traders might consider strategies like buying put options to speculate on a dovish repricing, as the expected rate cut could weigh on Sterling in the short term.\n\n<h3>Implications For Options And Positioning<\/h3>\n\n<b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b>\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>Sterling slid as Middle East war spurred risk-off trading; Nomura sees BoE March cut decision finely balanced.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-29778","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=29778"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29778\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=29778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=29778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=29778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}