Investor Confidence Rises on Middle East Developments

Investor sentiment received a boost following reports late Thursday that the U.S. and Iran have drafted a framework to extend their ceasefire by 60 days. This extension aims to provide a buffer for ongoing negotiations regarding Tehran’s nuclear program and regional security. However, the proposal is not yet finalised, as it currently awaits official approval from U.S. President Donald Trump and formal confirmation from Iranian leadership.

Meanwhile, current market pricing reflects a strong conviction regarding upcoming European Central Bank policy moves. Financial markets are pricing in a high 91% probability of a 25-basis-point interest rate hike at the ECB’s next meeting on June 11, which would lift the bank’s key deposit facility rate to 2.25%. Looking further ahead, traders also see a 50% chance of an additional rate hike later this year in September.

GBP/EUR 1.1518 GBP/USD 1.3411 GBP/AED 4.9275

GBP/AUD 1.8745 GBP/CHF 1.0511 GBP/CAD 1.8512
GBP/NZD 2.2509 EUR/USD 1.1628 GBP/ZAR 21.8187

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