Published: 22/04/2026 By ECAP
DATA MOVES
The British Pound is supported by stronger-than-expected UK services inflation, signalling persistent domestic price pressures. This reinforces expectations that the Bank of England will keep interest rates higher for longer. Although headline inflation rose due to energy costs, underlying measures remain elevated. As a result, the likelihood of near-term rate cuts is reduced, providing a supportive backdrop for the currency.
The Euro faced pressure amid weakening economic sentiment, particularly after German data showed a sharp decline in investor confidence to its lowest level since late 2022. This dampened optimism about the Eurozone’s outlook and limited the currency’s ability to gain traction. Upcoming consumer confidence data may further influence performance, with any deterioration likely to reinforce concerns and weigh additionally on the euro’s near-term direction.
The US Dollar held modest support as cautious sentiment and geopolitical tensions boosted safe-haven demand. Ongoing strain between the United States and Iran, disruptions in the Strait of Hormuz, and uncertainty over peace talks unsettled investors. These risks kept demand resilient, with markets watching for further escalation or diplomatic progress, which could either sustain the currency’s strength or reduce its appeal if conditions stabilise overall.
Data supplied by GC Partners