Published: 27/03/2026 By ECAP
HOLDING PATTERN
The British Pound remains under pressure after UK retail sales fell in February, confirming a slowdown in consumer spending. Although the drop was smaller than expected, markets focused on the softer trend and Sterling edged lower on the release. With this data coming before the recent surge in oil prices, there are growing concerns that higher energy costs will further hit households and weigh on the UK economy.
The Euro is steady but lacks strong momentum. While it has recovered slightly, there are doubts about how long that can last. The Eurozone is more exposed to rising energy prices than the US, and recent data shows growth is already slowing. With the Middle East situation still unresolved, the Euro is likely to remain range-bound in the near term.
The US Dollar is slightly softer but remains supported overall. Even with signs of a possible pause in the conflict, uncertainty remains high. Markets expect US interest rates to stay higher for longer, which continues to support the Dollar. With geopolitical risks still present and oil prices elevated, the Dollar retains its safe-haven appeal heading into the weekend.
Data supplied by GC Partners