GBPUSD posts three-day losing streak, focus on BoE’s Bailey, U.S. data & Iran war

Risk aversion prevails

Market sentiment remains negative as Iran increases attacks on energy vessels, while U.S. efforts to ease the energy supply shortage fail to convince markets. U.S. inflation data met expectations and supported hawkish bets on the Federal Reserve (Fed), keeping the U.S. Dollar firm. A container ship was hit by a projectile near the port of Jebel Ali in the United Arab Emirates (UAE). 

EURUSD extends south-run, USDJPY hits seven-week high

EURUSD reversed its early-week gains and fell for the third consecutive day, pressured by a firmer USD and growing economic concerns in Europe linked to the Iran war. The European Union (EU) warned that the conflict and persistently high energy prices could push inflation in the region above 3% in 2026. European Commission Executive Vice-President and economy chief Valdis Dombrovskis said inflation risks would increase if Brent crude remains near $100 per barrel and natural gas prices stay elevated.

Antipodeans remain weak

AUDUSD ended its three-day winning streak, and NZDUSD fell for the third straight day, while USDCAD reversed a two-day losing streak, despite higher crude oil prices, Canadas key export.

Cryptocurrencies ease, equities drop

Bitcoin (BTC) and Ethereum (ETH) both posted their first daily loss in four days, weighed down by the markets risk-off mood, a firmer USD, and lingering lack of confidence in crypto markets following the early 2026 drawdown.

Latest moves of key assets

• WTI crude oil posts a three-day winning streak near $92.80 by press time.

• Gold remains pressured around $5,160, down for the second straight day as we write.

• The US Dollar Index (DXY) edges higher, posting mild gains around 99.40 as it rises for the third straight day despite lacking upside momentum of late.

• Wall Street closed mixed, and the Asia-Pacific stocks also drifted lower. On the same line, equities in Europe and the UK are modestly down during the initial hour.

• Bitcoin (BTC) and Ethereum (ETH) both post mild intraday losses, their first in four days, while declining to $69,300 and $2,030 at the latest.

Predictions for top-tier assets

• Bullish Move Expected: Gold, Silver

• Further Downside Likely: USDCHF, BTCUSD, ETHUSD, USDJPY

• Sideways Movement Anticipated: USDCAD, Nasdaq, DJI30, USDCNH, AUDUSD, NZDUSD, US Dollar

• Slow & Gradual Fall Eyed: DAX, FTSE 100, EURUSD, Crude Oil, GBPUSD