Published: 24/03/2026 By ECAP
PEACE PREMIUM
The British Pound has recovered as oil prices eased and markets took comfort from signs tensions may not escalate further. Hopes of a pause in the conflict helped Sterling bounce back from recent lows. However, the outlook remains uncertain. Markets are divided on whether the Bank of England will need to raise rates or hold steady, with growth risks still in focus. UK PMI data today and inflation tomorrow will be key.
The Euro is slightly softer as the Dollar regains some ground, though overall moves remain controlled. Attention today turns to Eurozone PMI data, which is expected to show a slowdown in business activity. While the data matters, markets are still being driven more by developments in the Middle East. For now, the Euro is holding steady but remains sensitive to changes in sentiment.
The US Dollar remains supported despite a slight easing in tensions. While there are signs of possible talks, the situation remains uncertain and investors are staying cautious. The Dollar continues to benefit from its safe-haven status, although the drop in oil prices has taken some pressure off markets. Attention now turns to US PMI data today, with further focus on inflation and growth later this week.
Data supplied by GC Partners