Published: 12/03/2026 By ECAP
OIL CONTROLS
The British Pound strengthened as renewed Middle East tensions and rising energy prices bolstered investor sentiment. Markets rapidly repriced UK interest-rate expectations, moving from anticipated cuts toward possible tightening amid rising inflation risks. Sterling’s gains were supported by mixed economic signals, with the Bank of England’s stance under close watch. Ongoing geopolitical developments and energy market pressures continue to influence the pound’s outlook and market momentum.
The Euro weakened as renewed escalation in the Middle East unsettled markets and drove energy prices higher. Reports of attacks near the Strait of Hormuz heightened concerns about disruptions to a key global oil shipping route. Given the Eurozone’s heavy reliance on imported energy, rising fuel costs revived fears of inflationary pressure and economic strain, weighing on sentiment toward the single currency.
The US Dollar strengthened after inflation data met expectations, reinforcing views that price pressures remain persistent. Headline and core consumer inflation held steady, supporting expectations that the Federal Reserve will keep interest rates higher for longer and delay policy easing. Rising oil prices added support as supply concerns lifted energy markets. Investors now focus on upcoming labour market data for further signals on economic resilience.Data supplied by GC Partners