{"id":48998,"date":"2026-03-12T10:52:34","date_gmt":"2026-03-12T10:52:34","guid":{"rendered":"https:\/\/www.vtmarkets.com\/uncategorized\/for-a-third-session-gbp-usd-slips-to-weekly-lows-then-claws-back-towards-1-3400-slightly-down\/"},"modified":"2026-03-12T10:52:34","modified_gmt":"2026-03-12T10:52:34","slug":"for-a-third-session-gbp-usd-slips-to-weekly-lows-then-claws-back-towards-1-3400-slightly-down","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/live-updates\/for-a-third-session-gbp-usd-slips-to-weekly-lows-then-claws-back-towards-1-3400-slightly-down\/","title":{"rendered":"For a third session, GBP\/USD slips to weekly lows, then claws back towards 1.3400, slightly down"},"content":{"rendered":"GBP\/USD fell for a third day and hit a weekly low near 1.3370 in the Asian session on Thursday. It later recovered a few pips to about 1.3400 and was down less than 0.15% on the day.\n\nThe US Dollar rose as traders moved towards safer assets amid ongoing fighting in the Middle East. This demand for the Dollar added pressure to GBP\/USD.\n\n

Dollar Demand Rises On Geopolitical Risk<\/h3>\nIran\u2019s Islamic Revolutionary Guard Corps said it launched a joint operation with Lebanon\u2019s Hezbollah against targets in Israel, Jordan, and Saudi Arabia. The report followed the most intense US-Israeli bombardments on Iran on Tuesday and pointed to a further escalation in the conflict between Israel-US forces and Iran.\n\nLooking back at the Middle East hostilities in 2025, we recall how the sharp flight to safety benefited the US Dollar. That event established a clear pattern of dollar strength during major geopolitical flare-ups, pressuring pairs like GBP\/USD. This memory should guide our strategies, as markets now price in a higher risk premium for regional instability.\n\nIn the coming weeks, we should anticipate that underlying volatility will remain elevated. This makes hedging with options a sensible approach, particularly buying put options on GBP\/USD to protect against a sudden downturn. Data shows that during the 2025 crisis, one-month implied volatility for the pair jumped by over 30%, and while it has settled, it remains above the five-year average.\n\nThe policy divergence between central banks will also be a key driver. With the US Federal Reserve signaling a more hawkish stance to curb persistent inflation, which sits at 3.1% as of last month’s data, the dollar has a fundamental tailwind. In contrast, the Bank of England is grappling with a weaker UK growth forecast of just 0.5%, making it less likely to match the Fed’s tightening cycle.\n\n

Energy Markets And Portfolio Hedging<\/h3>\nWe must also consider the impact on energy markets, given the regions involved in last year’s conflict. Brent crude futures, which spiked to over $110 a barrel during the 2025 escalation, are sensitive to any new developments. Holding long positions in crude oil call options could therefore act as an effective portfolio hedge against a repeat of those events.\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>\n","protected":false},"excerpt":{"rendered":"

GBP\/USD hit weekly low near 1.3370 as safe-haven dollar rose amid escalating Middle East conflict tensions.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-48998","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t