Fresh attacks between both the U.S & Iran have dampened hopes for a peace deal anytime soon, after Iran targeted U.S bases across the Gulf region in response to earlier attacks from Donald Trump on Iranian military sites near the Strait of Hormuz.
This fresh escalation has only raised concerns higher over Oil supply problems and has led to crude prices climbing higher, again adding to worries that energy-driven inflation could remain higher for longer across the globe.
In the way of economic data, markets will turn their attention to U.S Consumer Inflation data due out this afternoon. It’s anticipated this data release could offer fresh insights into the Federal Reserve’s thinking for future interest rate movements. A hot inflation reading would no doubt reinforce the higher-for-longer path for US rate expectations which would bring further support to The US Dollar, especially as the conflict in The Middle East is currently showing no signs of slowing down at all.
Current forecasts for US Inflation later are set to show both inflation including food and energy and also excluding food and energy rising on the year-on-year comparisons, with inflation excluding food and energy expected to rise by 0.1%, to 2.9%, and inflation including expected to rise by 0.4%. To crucially hit 4.2%.
Later this evening we have the Bank of Canada’s interest rate decision. Rates are currently at 2.25% and have remained unchanged since October 2025, with today’s decision also looking likely to remain unchanged for a fifth straight meeting as the central bank is struggling to keep their economy out of a nearing recession.
GBP/EUR 1.1576 GBP/USD 1.3378 GBP/AED 4.9165
GBP/AUD 1.9074 GBP/CHF 1.0683 GBP/CAD 1.8643
GBP/NZD 2.3036 EUR/USD 1.1542 GBP/ZAR 22.1387