Stalled Talks
GBP: The British Pound is holding steady ahead of the Bank of England decision, with markets waiting for guidance rather than the outcome itself. The bigger driver remains the backdrop, with energy prices staying elevated and adding pressure to the UK outlook. With the Iran situation dragging on and uncertainty building, the Pound lacks a clear catalyst and is likely to remain sensitive to both headlines and any shift in tone from policymakers.
EUR: The Euro is trading sideways, with markets in wait-and-see mode ahead of key central bank updates. Sentiment is being held in check by the ongoing stalemate in the Middle East, which is keeping energy prices elevated. While the Euro has been relatively stable, it lacks momentum, with any upside limited unless there is a clear improvement in the geopolitical backdrop.
USD: The US Dollar is firmer as tensions in the Middle East show little sign of easing. The conflict appears to be settling into a longer, drawn-out phase, keeping oil prices elevated and supporting demand for safe-haven assets. With negotiations stalled and uncertainty high, the Dollar remains supported, particularly if markets continue to take a more cautious stance.
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