Published: 17/03/2026 By ECAP
STUNTED MARKETS
The British Pound traded without clear direction, edging lower as investors balanced geopolitical developments and shifting central bank expectations. With no fresh UK data, sterling followed broader market sentiment and faced pressure from forecasts that the Bank of England may cut interest rates in 2026. This more dovish outlook contrasted with market expectations of tightening, limiting demand and keeping the currency subdued amid ongoing uncertainty overall.
The Euro found modest support from improved market sentiment as efforts to secure energy shipments eased supply concerns and reduced inflation risks. However, gains remain limited by geopolitical uncertainty, weak economic data expectations, and cautious messaging from the European Central Bank, leaving the euro sensitive to energy developments, investor confidence and shifting outlooks.
The US Dollar strengthened as escalating conflict in Iran drove persistent oil supply disruptions and heightened fears of prolonged global recession and inflation. With no clear path to de-escalation, markets increasingly view the crisis as long-term, boosting demand for the dollar as a safe haven. Ongoing energy instability and delayed monetary easing expectations continue to support its resilience amid worsening global economic conditions.Data supplied by GC Partners