Published: 10/03/2026 By ECAP
ENERGY DOMINATES
The British Pound strengthened as easing concerns over a US-Iran conflict reduced the oil price surge and softened the dollar. Lower energy prices helped calm global markets, while shifting interest-rate expectations provided further support. Money markets have moved from pricing in rate cuts to anticipating a possible Bank of England hike, a notably hawkish shift that has improved sterling’s relative outlook and resilience.
The Euro faced pressure as a sharp surge in oil prices, driven by Middle East supply disruptions, raised concerns for the energy-dependent Eurozone economy. Sentiment was further weakened by disappointing German factory orders and industrial production data, signalling a weak start for manufacturing. Energy market developments remain the key driver, though a potential release of emergency oil reserves could help stabilise markets and ease pressure.
The US Dollar strengthened as investors sought safety following reports of US and Israeli strikes on Iranian energy infrastructure. Escalating Middle East tensions pushed oil prices sharply higher, raising fears of supply disruption and a global inflation shock. Safe haven demand increased, supported by the perception that the United States is relatively insulated from rising energy costs due to strong domestic production and energy independence perceptions.Data supplied by GC Partners