Published: 01/04/2026 By ECAP
EXIT SIGNAL
The British Pound remains under pressure despite a small rebound today. Earlier this week, Sterling fell to multi-month lows as rising energy prices and supply risks hit sentiment. The UK is particularly exposed as an energy importer, which is weighing on growth expectations. While hopes of an end to the conflict are offering some short-term support, the broader outlook remains fragile for the Pound.
The Euro has edged higher but lacks strong momentum. While there are signs the conflict could ease, ongoing risks around energy supply continue to cap gains. Europe remains exposed to higher oil prices, which could weigh on growth. As a result, the Euro is struggling to push higher and is likely to remain sensitive to headlines around the Middle East.
The US Dollar remains firm, supported by high oil prices and ongoing uncertainty. Even with talk of a potential end to the conflict, markets remain cautious as risks are still elevated. Rising energy costs are also reinforcing expectations that US interest rates will stay higher for longer. This is keeping the Dollar supported, with safe-haven demand still a key drive.
Data supplied by GC Partners