Renewed geopolitical uncertainty lifts USD, leaving EUR and GBP on the back foot.
USD – Remains supported as renewed geopolitical tensions and fading diplomatic optimism drive safe‑haven demand, with risk sentiment deteriorating and markets reassessing the near‑term outlook for US rates
EUR – Continues to trade on the back foot as a firmer dollar and rising risk aversion outweigh earlier support from lower energy prices, leaving the single currency sensitive to further geopolitical developments.
GBP – Remains under pressure against the dollar, with safe‑haven flows favouring USD while domestic political uncertainty and fragile sentiment leave sterling vulnerable.
USD:
The dollar strengthened as hopes of progress between the US and Iran faded, with both sides dismissing recent peace initiatives. The shift back toward risk aversion supported the greenback, pressuring risk‑sensitive currencies and lifting the US Dollar Index. Markets remain focused on geopolitical developments alongside upcoming US data and Fed commentary for further direction.
EUR:
The euro held losses as renewed geopolitical uncertainty and broad USD strength dominated price action. While falling oil prices continue to ease inflation concerns in the Eurozone, this support has been outweighed by weaker risk sentiment. Near‑term EUR performance remains closely tied to external drivers rather than domestic fundamentals.
GBP:
Sterling remained biased to the downside below key levels as safe‑haven demand underpinned the dollar. Rising geopolitical tensions have weighed on risk appetite, while ongoing domestic political uncertainty continues to act as an additional headwind for the pound.
Economic Calendar
| Expected | Previous | ||
|---|---|---|---|
| 3pm BST - USD | Existing Home sales | 4.05 | 3.98 |