Published: 02/04/2026 By ECAP
WAR RAMPS
The British Pound has slipped again after hopes of a quick end to the conflict faded. Rising oil prices and renewed tensions are weighing on sentiment, particularly given the UK’s reliance on imported energy. Sterling had recovered slightly earlier in the week, but that move has reversed. With uncertainty still high and energy costs rising again, the near-term outlook for the Pound remains weak.
The Euro is under pressure as the Dollar strengthens following renewed escalation in the conflict. Higher energy prices are also a concern for the Eurozone, which remains heavily reliant on imports. While the Euro had stabilised earlier this week, the latest developments have pushed it lower again. For now, it remains vulnerable to further downside if tensions continue to rise.
The US Dollar is stronger as markets react to signs the conflict could last longer than expected. Renewed tensions have pushed oil prices higher and triggered fresh demand for safe-haven assets. Expectations that US interest rates could stay higher for longer are also supporting the currency. With uncertainty rising again, the Dollar remains firmly supported heading into the end of the week.
Data supplied by GC Partners