British Pound Retreats as Strong US Data Revives Dollar

The pound sterling weakened on Monday, erasing earlier gains, after the US released stronger-than-expected ISM manufacturing data. The reading bolstered the dollar, reversing some of its recent softness and weighing on the cable pair.

Geopolitical developments added to the greenback's support. The US announced a pause in strikes on Iran, and both sides resumed negotiations, which markets perceived as de-escalation. This reduced the safe-haven bid that had previously favored other currencies over the dollar.

GBP/USD traded around 1.3439, having retreated from a daily high. The move marked a 0.27% decline for the pound, as the pair pulled back from levels seen earlier in the session.