TD Securities: Escalation of war may suppress the pound, but the pound will still outperform the euro

Golden Ten Data reported on March 13 that TD Securities analysts stated in their report that if the Iran war escalates, GBP/USD may decline further, but it could still perform better relative to the euro. "If the conflict escalates further and leads to a prolonged closure of the Strait of Hormuz, we will see a broad rise in the US dollar, which may cause GBP/USD to fall below 1.30," the analysts said. The US dollar is supported by its status as a safe-haven currency and the United States' position as a net oil exporter. Due to the slower transmission of inflation to the economy and lower sensitivity to oil imports, the pound should outperform the euro.