{"id":44828,"date":"2026-04-17T22:38:57","date_gmt":"2026-04-17T22:38:57","guid":{"rendered":"https:\/\/www.vtmarkets.com\/en\/uncategorized\/sterling-climbed-near-1-3600-as-hormuz-reopened-after-lebanon-ceasefire-weakening-the-us-dollar-during-us-trading-session\/"},"modified":"2026-04-17T22:38:57","modified_gmt":"2026-04-17T22:38:57","slug":"sterling-climbed-near-1-3600-as-hormuz-reopened-after-lebanon-ceasefire-weakening-the-us-dollar-during-us-trading-session","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-latam\/live-updates\/sterling-climbed-near-1-3600-as-hormuz-reopened-after-lebanon-ceasefire-weakening-the-us-dollar-during-us-trading-session\/","title":{"rendered":"Sterling climbed near 1.3600 as Hormuz reopened after Lebanon ceasefire, weakening the US dollar during US trading session"},"content":{"rendered":"GBP\/USD rose in the North American session on Friday after reports said Iran reopened the Strait of Hormuz. The move followed an agreement on a ceasefire in Lebanon.\n\nThe British Pound reached a daily high near 1.3600 as the US Dollar weakened. At the time of writing, GBP\/USD was 1.3567, up 0.36%.\n\n<h3>Geopolitical Deescalation And Dollar Weakness<\/h3>\nWe remember the market&#8217;s reaction in late 2025 when the Strait of Hormuz reopened, causing a sharp rally in GBP\/USD toward the 1.3600 level. That event showed us how quickly a fall in geopolitical risk can weaken the US dollar as a safe-haven asset. The sudden de-escalation caught many traders off guard, benefiting those positioned for a stronger pound.\n\nToday, implied volatility in the currency markets has fallen to its lowest level since early 2024, suggesting a broad sense of complacency. For instance, the CME&#8217;s British Pound Volatility Index (BVP) is currently hovering near 5.8, a significant drop from the double-digit figures we saw during past crises. This low volatility environment makes option premiums relatively cheap for those anticipating a future shock.\n\nFundamentally, the economic picture also supports a potentially stronger pound against the dollar. The latest data for the first quarter of 2026 showed UK core inflation remaining persistent at 3.4%, well above the Bank of England&#8217;s target. In contrast, U.S. inflation has moderated to 2.7%, giving the Federal Reserve more room to consider easing policy later this year.\n\nGiven this backdrop, buying long-dated GBP\/USD call options appears to be a prudent strategy over the coming weeks. This allows traders to position for a potential upside move with a defined, limited risk. The current low volatility means the entry cost for these positions is unusually attractive.\n\n<h3>Downside Risks And Hedging Considerations<\/h3>\nHowever, we must also consider the opposite scenario, as history has shown how quickly risk sentiment can reverse. A sudden global flare-up would trigger a flight to safety, strengthening the dollar and pushing GBP\/USD sharply lower, much like the initial market reactions during the 2022 global energy crisis. For this reason, hedging long positions with cheap, out-of-the-money puts could protect against an unexpected downturn.\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>\n\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/latam.vtmarkets.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>GBP\/USD climbed as Iran reopened Hormuz and Lebanon ceasefire boosted sentiment, weakening the US Dollar.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[41],"tags":[],"class_list":["post-44828","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/44828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/users\/87"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/comments?post=44828"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/44828\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media?parent=44828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/categories?post=44828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/tags?post=44828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}