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British Pound slumps against US Dollar as risky assets turn fragile

July 8, 2026

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The British Pound declines to near 1.3340 against the US Dollar amid risk-off market sentiment.
US President Trump says that the MoU with Iran is over.
Investors await the FOMC Minutes of the June policy meeting.

The British Pound (GBP) is down 0.13% to near 1.3340 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair faces selling pressure as renewed geopolitical risks have diminished the appeal of riskier assets.

At press time, S&P 500 futures are down almost 1% to near 7,430, demonstrating a risk-off market mood. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally higher to near 101.15 after recovering early losses.

Risks of the restart of the Middle East war have forced investors to shift to the safe-haven fleet. In the European trade, United States (US) President Donald Trump said that the “memorandum of understanding (MoU) with Iran is over”, adding that he doesn’t want to deal with them.

This came as Tehran continues to prove its authority over the Strait of Hormuz, a critical chokepoint to almost 20% of the global energy supply, with aggression. On Tuesday, Tehran struck commercial ships passing through the chokepoint, stating that were crossing the passage without approval.

Meanwhile, investors await the Federal Open Market Committee (FOMC) Minutes of the June policy meeting, which will be published at 18:00 GMT. Investors will pay close attention to FOMC minutes to get cues regarding why Fed officials decided to abandon forward guidance.