GBP/USD rose after Israel and Lebanon agreed to extend a ceasefire and Trump said the US and Iran could reach a deal by the weekend. A Monex Europe analyst said those gains are unlikely to persist. Headwinds for sterling include the ongoing closure o

2026-06-04

GBP/USD rose after Israel and Lebanon agreed to extend a ceasefire and Trump said the US and Iran could reach a deal by the weekend. A Monex Europe analyst said those gains are unlikely to persist. Headwinds for sterling include the ongoing closure of the Strait of Hormuz and its trade impact, a cooling UK labor market, softer inflation prints, and the risk of a leadership challenge to Prime Minister Starmer. The analyst said Friday’s Bank of England policymaker-panel survey and US nonfarm payrolls could reinforce downside pressure on the pound.