Published: 30/04/2026 By ECAP
PRESSURE BUILDS
The British Pound is under pressure as political risk becomes more explicit. Reports that senior figures could challenge Starmer after next week’s elections are starting to get market attention, alongside ongoing questions around the Chancellor’s position. At the same time, higher energy prices are adding to concerns around the UK outlook. For now, the Pound looks vulnerable, particularly if political noise continues to build.
The Euro is relatively steady but lacks momentum. Weak German retail sales point to softer underlying demand, although this is being offset by broader market stability. Energy remains the dominant theme, with elevated prices continuing to shape the outlook. For now, the Euro is holding its ground, but without a clear catalyst, it remains sensitive to external developments.
The US Dollar is steady after the Federal Reserve left policy unchanged at its latest meeting, while highlighting growing uncertainty around the outlook. Rising energy prices and ongoing tensions in the Middle East are keeping markets cautious, supporting demand for safer assets. Despite resilient equity markets, the broader tone remains fragile. For now, the Dollar stays supported if oil prices remain elevated.
Data supplied by GC Partners