Daily FX Market Update – 24th June 2025
Welcome to your daily market update, bringing you the latest insights into the major currency movements shaping global markets.
GBP – Sterling Finds Support Amid Middle East Ceasefire
The British Pound strengthened following the announcement of a ceasefire agreement between Israel and Iran. This development eased fears of a broader regional conflict and improved global investor sentiment.
As geopolitical tensions subsided, oil prices fell, weakening the U.S. Dollar and offering support to Sterling. However, any further upside for the Pound may be capped by domestic headwinds, including uncertainty over the UK’s economic outlook and growing speculation that the Bank of England could move to cut interest rates in the coming months.
EUR – Euro Slips on Improved Risk Appetite
The Euro edged lower as investors shifted toward risk-sensitive currencies in response to easing geopolitical concerns. Typically viewed as a more stable option during periods of market stress, the Euro saw reduced demand amid a broader return to risk-on sentiment.
Despite this dip, the single currency remains highly reactive to geopolitical developments. Any renewed instability or volatility—particularly in the Middle East—could quickly restore demand for the Euro as a perceived safe haven.
USD – Dollar Weakens as Safe-Haven Demand Fades
The U.S. Dollar lost ground after news of the Israel-Iran ceasefire dampened demand for traditional safe-haven assets. Markets interpreted the de-escalation as a signal of reduced risk, pushing investors toward more growth-oriented currencies.
That said, the situation remains fragile. Any renewed tensions—especially involving strategic areas like the Strait of Hormuz—could lead to a swift rebound for the Dollar, reinforcing its status as a global refuge during periods of crisis.
Looking Ahead
As always, the FX markets remain sensitive to geopolitical events and central bank policy speculation. If you would like to discuss your upcoming currency requirements, review your current exchange strategy, or explore how we can help navigate market volatility, please don’t hesitate to get in touch.