Pound rises above $1.34, recovers from earlier lows

UK equities, Brent oil futures declined 9.8% to $101.26 a barrel, spot gold slid 1.05% to $4,444.17 an ounce, while gold futures dipped 2.5% to $4,492.86/oz

The British pound rose above $1.34 on Monday, recovering from earlier lows near $1.32, after U.S. President Donald Trump announced a temporary delay of strikes against Iranian infrastructure following what he called “productive” discussions with Tehran.

UK equities and global stocks turned higher following the announcement, while Brent oil futures declined 9.8% to $101.26 a barrel. U.S. West Texas Intermediate crude futures dropped 8.9% to $89.46 a barrel as of 13:10 GMT. Spot gold slid 1.05% to $4,444.17 an ounce, while gold futures dipped 2.5% to $4,492.86/oz.

Based on the tenor and tone of these in depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the department of war to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions, the president wrote in a post on Truth Social.

Separately, the president said on Fox Business that Iran wants to make a deal and it could happen within five days or sooner.

Iran’s Fars News Agency, citing a source, said there are no direct or indirect communications with the US. A senior security official called Trump’s comments “psychological warfare,” according to Tasnim News Agency.

Last week, UBS said in a note that the British pound is likely to remain under pressure against the U.S. dollar in the near term, lowering its June forecast to 1.34.

UBS forecasts GBP/USD at 1.34 for June, 1.37 for September, and 1.40 for December and March 2027. The firm noted that resistance stands near 1.35, with stronger resistance around recent highs of 1.37-1.38.