Geopolitical news looming over the Major currencies

Daily Currency Update

Sterling edged lower, dipping to $1.3428 as markets digest Middle East tensions and await this week’s UK and EU PMIs.

The euro-to-pound rate held around €0.8537, stable after a modest decline last week.

Gilt yields inched higher, as geopolitical risk spurred a cautious shift away from safe-haven bonds.

We have seen the EUR/USD slip to about 1.1505, weighed down by a stronger dollar driven by haven flows into U.S. assets.

With oil up 2% on the back of Middle East worries, energy-linked inflation fears are creeping into ECB outlooks.

Over in the US, the Dollar Index firmed up 0.12%, reaching around 99.04, supported by safe-haven demand amid escalated U.S.-Iran tensions.

Treasury yields ticked higher, though markets expect the Fed to hold fire until September, as suggested by futures pricing (70% odds.)