Optimism for a de-escalation in the Middle Eastern conflict is growing after U.S President Donald Trump stated yesterday that more talks could be happening over the next two days in Pakistan. It has also been suggested by Donald Trump that Iranian Officials have reached out to The White House, but current sticking points centre around Iran’s enriched Uranium – with The U.S wanting Iran to agree to not building nuclear weapons for 20 years, whilst Iran have currently only agreed to a period of up to 5 years. The fact that more talks are set to take place over the coming days has seen The Dollar ease off slightly against major currency pairs.
Yesterday’s inflation release in The US also calmed markets, with Producer Price Index figures increasing marginally by 0.5% on the month and 4% on the year – crucially missing expected increases of 1.1% and 4.6% respectively. Core Inflation figures experienced its biggest jump since February 2023, climbing by 3.8% however this was mainly contributed by an 8.5% monthly jump from energy price increases.
The fact inflation missed headline numbers is positive for now, but we know generally that higher gas prices will likely filter through over the coming months and therefore we can expect to see higher inflation readings as we head into the summer months, which could lead to a delay in any movement from The Federal Reserve with interest rates.
GBP/EUR 1.1493 GBP/USD 1.3555 GBP/AED 4.9826
GBP/AUD 1.8970 GBP/CHF 1.0568 GBP/CAD 1.8655
GBP/NZD 2.2946 EUR/USD 1.1783 GBP/ZAR 22.1348