{"id":30238,"date":"2026-03-09T18:59:20","date_gmt":"2026-03-09T18:59:20","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/30238\/"},"modified":"2026-03-09T18:59:20","modified_gmt":"2026-03-09T18:59:20","slug":"during-the-european-session-gbp-usd-drops-0-5-near-1-3350-with-further-losses-expected-below-1-3250","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/30238\/","title":{"rendered":"During the European session, GBP\/USD drops 0.5% near 1.3350, with further losses expected below 1.3250"},"content":{"rendered":"The Pound Sterling fell 0.5% to about 1.3350 against the US Dollar in Monday\u2019s European session. GBP\/USD moved lower as the Dollar strengthened, with demand for safe-haven assets remaining firm amid conflict in the Middle East involving the US, Israel and Iran.\n\nThe US Dollar Index (DXY) was up 0.5% at around 99.35. The Dollar stayed supported as the situation risked further escalation after Mojtaba Khamenei was announced as Iran\u2019s new Supreme Leader.\n\n

Dollar Demand Rises On Geopolitical Risk<\/h3>\nUS President Donald Trump said last week that this choice would be \u201cunacceptable\u201d and that he intends to pick a new leader for Iran. These developments have coincided with renewed demand for the Dollar.\n\nOver the week, GBP reached a three-month low near 1.3250, then made a modest rebound, but still finished the week lower. The move was linked to a shift towards the US Dollar as a safe-haven and reserve currency during the United States\u2013Israel attack on Iran and wider market volatility.\n\nWe are looking back at the sharp move in the Pound during the Middle East conflict of 2025, which saw the US Dollar Index surge to 99.35. That flight to safety pushed GBP\/USD down to a three-month low of 1.3250 as traders sought refuge in the dollar. This was a classic risk-off event, where geopolitical fears overshadowed economic fundamentals.\n\nThe fallout from that 2025 war included a significant spike in oil prices, reminiscent of the price shocks seen during the Gulf War in 1990-1991. This led to persistent inflation that both the US Federal Reserve and the Bank of England have been fighting with higher interest rates ever since. Now, the market dynamic has completely shifted from geopolitics to interest rate differentials.\n\n

Markets Shift Toward Rate Differentials<\/h3>\nCurrently, the focus is on which central bank will cut rates first. Recent data shows US inflation has cooled more effectively, falling to 2.8%, while UK inflation remains stubbornly high at 3.5% as of last month’s report. This suggests the Bank of England will have to maintain its restrictive policy for longer than the Federal Reserve.\n\nGiven this divergence, traders should consider positioning for a reversal of last year’s trend and a stronger Pound relative to the Dollar. Buying GBP\/USD call options with strike prices around 1.3500 could be an effective strategy to capitalize on potential upside in the coming weeks. This allows for profiting from a rise in the pound while limiting downside risk.\n\nInterest rate futures markets are now pricing in a greater than 60% probability of a Fed rate cut by July 2026, but only a 30% chance of a Bank of England cut in the same period. This data supports a long Pound position against the Dollar. Therefore, using derivatives to bet on a strengthening pound reflects the current central bank policy outlook, which is a stark contrast to the fear-driven trades of 2025.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

Pound Sterling slid to 1.3350 as safe-haven Dollar demand rose amid escalating Middle East conflict tensions.<\/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-30238","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\/30238","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=30238"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30238\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=30238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=30238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=30238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}