The Weekly Market Update
News & Insights
w/c 30th March: Oil Shock
GBP
The British Pound is on the back foot as rising oil prices and global uncertainty weigh on confidence. The conflict in the Middle East is pushing energy costs higher, which is a risk for UK households and growth. GBP/USD remains in a short-term downtrend, showing limited recovery despite a small bounce. With markets focused on global risks rather than UK data, Sterling looks vulnerable near term.
EUR
The Euro is under pressure as investors move towards the Dollar. Rising energy prices are a bigger concern for the Eurozone, given its reliance on imports. The pair is holding near recent lows and looks vulnerable if tensions escalate further. This week’s inflation data will be key, but for now, global sentiment and energy markets are the main drivers for the Euro.
USD
The U.S. Dollar is firm as investors seek safety amid rising tensions in the Middle East. Higher oil prices are also supporting the US outlook relative to Europe. Markets are now looking ahead to a busy week of data, particularly Friday’s jobs report, which will shape expectations for interest rates. With geopolitical risks still elevated, the Dollar remains well supported for now.
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