Pound Sterling (GBP)

The British Pound gained strength after a ceasefire in the Middle East calmed fears of a broader conflict and lifted global investor sentiment. The reduction in geopolitical tensions led to lower oil prices and weakened the U.S. Dollar, both of which supported the Pound. However, Sterling’s potential gains may be capped by ongoing concerns about the UK economy and expectations that the Bank of England might soon lower interest rates.

Euro (EUR)

The Euro slipped slightly as the de-escalation in geopolitical tensions reduced the appeal of traditionally safe-haven currencies. Improved risk appetite in the markets favoured risk-sensitive assets, contributing to the Euro’s relative decline. Nonetheless, the single currency remains sensitive to changes in global stability and could benefit if uncertainty or market volatility returns.

U.S. Dollar (USD)

The U.S. Dollar softened after a ceasefire between Israel and Iran diminished the need for safe-haven assets. Investors viewed the development as a sign of reduced risk, prompting a move toward riskier currencies. Still, if tensions escalate again—especially around the strategic Strait of Hormuz—the Dollar could swiftly recover due to its status as a global safe-haven during crises