The Weekly Market Update

w/c 16th June: Rising Tensions

GBP

The British Pound faces a cautious outlook this week amid rising global tensions linked to the Middle East conflict and anticipation of the Bank of England’s policy decision. While rates are expected to stay on hold, soft UK data could prompt a dovish tone. Ultimately, geopolitical uncertainty is adding downside risk, as elevated market volatility tends to weigh on the Pound despite any potential short-term support from inflation data.

EUR

The Euro starts the week on firm footing, supported by hawkish signals from European Central Bank officials. However, momentum could stall if Germany’s ZEW economic sentiment index shows further deterioration. Moreover, geopolitical tensions in the Middle East add uncertainty, as elevated risk levels may weigh on market confidence. Overall, the Euro’s direction will depend on upcoming data and broader global developments.

USD

The U.S. Dollar is trading on a steady note, holding firm as investors remain cautious amid rising Middle East tensions and anticipation ahead of the Federal Reserve’s policy decision. While no rate change is expected, the market’s attention is fixed on the Fed’s guidance on inflation and future policy. Ultimately, Ongoing risk aversion and global uncertainty continue to underpin short-term Dollar strength.

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