Pound to Australian Dollar Price News, Forecast: GBP Near Two-Month High

GBP/AUD traded near a two-month high as rising Middle East tensions hurt global risk appetite and pressured the risk-sensitive Australian dollar. The pair briefly reached AU$1.9120 before easing to around AU$1.9097. AUD weakness was driven by investors shifting toward safe-haven assets after the U.S. carried out a second day of strikes on Iranian targets, though some support came from hopes that diplomatic talks could resume. Sterling was comparatively steady, helped by a slight pullback in UK gilt yields after a sharp rise the previous day. Looking ahead, the market is focused on upcoming UK GDP data, expected to show a 0.1% contraction in April, which could influence Bank of England expectations and limit further pound gains if weaker than forecast. For AUD, geopolitical developments remain the dominant driver, with further escalation likely to keep pressure on the currency.