|
Forex and Interest Rate Outlook - April 2026
- Economic outlook thrown into uncertainty with escalation of war in Iran. Temporary disruption will dent growth and boost inflation, with risk of more prolonged and damaging conflict
- US economy more insulated to shocks, with Eurozone and UK exposed to global energy volatility
- Central banks held in March and delivered hawkish rhetoric. Market has repriced for higher rates, but central bankers have been sounding more dovish of late, and we expect hold/cuts in near term.
- Geopolitics temporarily supporting dollar, but Fed policy, AI and labour markets will return to the fore post conflict
- Further modest upsidefor the euro, while sterling could remain on the defensive amid geopolitical uncertainty
|
|
