Published: 16/06/2026 By ECAP
MIXED MARKETS
The British Pound was mixed at the start of the week. Improved global risk appetite following progress towards a US-Iran peace agreement supported the Pound, while lower UK borrowing costs and easing energy-price pressures further boosted sentiment. However, gains were tempered by investor caution ahead of key domestic events, including the Bank of England’s policy decision, UK economic data and the Makerfield by-election. Uncertainty surrounding politics and monetary policy may keep Sterling’s movements constrained in the near term.
The Euro strengthened at the start of the week as investors welcomed a framework peace agreement between the US and Iran, which improved market sentiment and supported demand for risk-sensitive assets. Additional support came from expectations that the European Central Bank could maintain a relatively restrictive monetary policy stance following last week’s interest rate increase. Attention now turns to Germany’s ZEW sentiment survey, with weaker data potentially limiting the Euro’s recent momentum.
The US Dollar came under pressure at the start of the week as a framework peace agreement between the US and Iran boosted market confidence and reduced demand for safe-haven assets. While the currency weakened broadly, losses were limited by lingering doubts over the durability of the peace process and ongoing regional tensions. Investors remain cautious ahead of major central bank decisions and key economic data releases, which could shape the Dollar’s near-term direction.
Data supplied by GC Partners