Published: 09/04/2026 By ECAP
MARKETS STABILISING? But for how long?
The British Pound rose on initial market relief following a Middle East ceasefire, benefiting from improved risk sentiment and easing energy prices. However, gains proved limited as geopolitical tensions persisted and the ceasefire appeared fragile. Falling domestic bond yields and shifting interest rate expectations also weighed on momentum. While calmer conditions offered support, ongoing uncertainty and financial pressures suggest the pound’s upside remains constrained in the near term.
The Euro faced pressure as weaker Eurozone data undermined demand despite improved global risk sentiment following a Middle East ceasefire. Disappointing German factory orders, falling retail sales, and declining producer prices highlighted economic fragility. While easing geopolitical tensions offered some indirect support, the single currency struggled to capitalise. Attention now turns to upcoming German trade and industrial data, which could stabilise sentiment if signs of recovery emerge.
The US Dollar weakened as easing geopolitical tensions following a United States–Iran ceasefire reduced demand for safe-haven assets. Improved global risk sentiment, rising equities, and falling oil prices all pressured the currency. Investors remained cautious ahead of Federal Reserve meeting minutes. Looking forward, the dollar may stay soft if risk appetite holds, though persistent inflation could revive expectations of tighter policy and provide underlying support.
Data supplied by GC Partners