The Weekly Market Update
News & Insights
w/c 2nd March: Middle East
GBP
The British Pound is under pressure as markets digest soft UK data and heightened geopolitical risk after weekend strikes on Iran. Weak jobs and inflation figures have pushed expectations that the Bank of England will cut rates in March, keeping Sterling on the back foot. Rising oil prices and risk-off sentiment also hurt the Pound, with traders watching upcoming UK retail sales and preliminary PMI readings later this week for fresh direction.
EUR
The Euro is steady but not immune to risk-off moves. Traders are pricing in a cautious tone as geopolitical tensions and resilient US data support the Dollar. Speculation around possible leadership change at the European Central Bank has also been in focus, although no decision has been made. Later this week, Eurozone flash PMI and growth data could help give the shared currency clearer direction.
USD
The U.S. Dollar has regained safe-haven demand amid Middle East escalation and rising oil prices. Risk aversion and solid US economic signals have kept the Dollar supported against peers. This week also features key US data, including the February jobs report, which could be a major driver for Dollar moves and expectations around Federal Reserve policy. Markets will also watch PCE inflation and earnings, adding further catalysts later in the week.
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