Pound Sterling (GBP)

Sterling picked up speed yesterday as tensions in the Middle East eased following the news of a ceasefire between Israel and Iran. This shift pushed investors towards riskier assets and away from traditional safe-haven currencies, giving the Pound a boost. The Bank of England’s cautious tone around possible rate cuts added to the upbeat sentiment, supporting Sterling into the morning.

Euro (EUR)

The Euro strengthened notably as the U.S. dollar lost its appeal as a safe haven amid calmer geopolitical conditions. European central banks are now seen as close to concluding their interest rate adjustments, and the weaker Dollar reinforced confidence in the Euro.

U.S. Dollar (USD)

The U.S. Dollar weakened both yesterday and early today. The ceasefire news dampened demand for reliable, crisis-proof assets. At the same time, comments from U.S. Federal Reserve officials hinted that interest rates may be cut later this year—adding downward pressure on the Dollar. Investors are now awaiting upcoming speeches for further clues.