Dollar gains on back of Middle East uncertainty
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Daily Currency Update
The EUR/USD continued its decline overnight as markets reacted to the situation in Syria, where dictator Bashar al-Assad fled to Moscow following a swift takeover. The region, already grappling with conflicts involving Israel, Gaza, and Lebanon, now faces heightened uncertainty about Syria's future.Financial markets responded with a shift to safe-haven assets, boosting the U.S. dollar. The EUR/USD pair has fallen below 1.0550, while GBP/USD slipped from 1.2800 to 1.2750 since yesterday afternoon.
Key Movers
Outside the turmoil in the Middle East, markets have seen limited data-driven movement so far this week. Today is expected to remain quiet, with attention focused on geopolitical developments and potential trade-related comments from Donald Trump.Key upcoming events include U.S. inflation data tomorrow, with the Consumer Price Index (CPI) expected to edge up to 2.7% year-on-year from 2.6%. The highlight of the week is Thursday's European Central Bank (ECB) interest rate decision. ECB President Christine Lagarde is anticipated to announce a 0.25% rate cut. Her commentary on the Eurozone's economic health and the 2025 outlook will be closely scrutinised.
Expected Ranges
- GBP/USD: 1.2685 - 1.2800 ▼
- GBP/EUR: 1.2000 - 1.2120 ▲
- GBP/AUD: 1.9840 - 2.0000 ▲
- EUR/USD: 1.0480 - 1.0600 ▼