Published: 26/03/2026 By ECAP
DEMAND DROP
The British Pound is under pressure as signs grow that the UK economy is slowing. Consumer confidence has fallen sharply, with households worried about rising energy bills linked to the Middle East conflict. Business surveys also show costs rising quickly. As a result, markets are scaling back expectations for further Bank of England rate hikes, which is weighing on Sterling and limiting any recovery.
The Euro is relatively steady, helped by a softer Dollar on the day. However, the outlook remains uncertain as Europe faces the same energy price risks as the UK. Higher costs could weigh on growth in the months ahead. For now, the Euro is holding its ground, but like other currencies, it remains sensitive to developments in the Middle East.
The US Dollar is steady as markets wait for clarity on whether tensions in the Middle East will ease. Mixed messages around possible talks have kept investors cautious. While the Dollar remains supported overall by its safe-haven status, it has struggled to push higher today. Until there is clearer direction on the conflict, the Dollar is likely to remain firm but range-bound.
Data supplied by GC Partners