Published: 24/04/2026 By ECAP
DATA RETURNS
The British Pound edged higher to a three-week high, supported by UK inflation data. Headline inflation rose to 3.3% while core eased, but stronger service-sector inflation signalled persistent domestic pressures. This kept expectations of a possible interest rate increase later this year alive, underpinning sterling. However, forecasts of slowing UK business activity, particularly in services, may limit further gains despite ongoing inflation concerns in near term.
The Euro struggled to find direction, lacking fresh Eurozone data to drive movement. It faced pressure as attention shifted to weaker private sector activity forecasts, with April PMIs expected to show near-stagnation. Although external factors offered limited support, the currency remained on the back foot. Concerns about slowing growth and subdued momentum weighed on sentiment, leaving the euro vulnerable in the near term.
The US Dollar found support amid a cautious, risk-off market mood driven by ongoing geopolitical tensions in the Middle East. Uncertainty surrounding the US-Iran situation and risks to shipping kept investors wary, boosting demand for the safe-haven currency. However, the outlook remains sensitive to shifts in market sentiment and upcoming consumer confidence data, which could influence near-term performance if it signals weakening household outlook.
Data supplied by GC Partners