​EBC Markets Briefing | Pound lower amid risk-off mood; uranium prices soared

Sterling dipped on Thursday as oil prices pushed above $100 per barrel, weighing on investor sentiment. UK inflation jumped to 3.3% in March, largely due to increased fuel prices.

A majority of economists polled by Reuters expect the BOE to keep rates unchanged for the rest of the year, arguing policymakers will "look through" the price acceleration caused by external factors.

The economy grew by 0.5% in February. While the data was far better than expected, analysts said it will very much be viewed as backward-looking data given subsequent war.

Iran's navy said it had seized two container ships in the strategically vital Strait of Hormuz, shortly after the US extended the ceasefire and as diplomats seek to bring the countries together for peace talks.

This came after reports that a second round of peace talks had been put on hold. Iran's chief negotiator said it is "not possible" for the Strait of Hormuz to be opened due to "the blatant violations of the ceasefire".

Even without any physical disruption to supply, the risk premium embedded in gas markets can increase electricity bills in Europe significantly. Gas is the second largest source of UK power.

The pound is on the verge of a death cross with few signs of fresh upside momentum. The slight bearish bias remains, and therefore we see a drop towards 1.3470 within this month.

Asset recap

As of market close on 22 April, among EBC major products, Boston Scientific Corp shares led gains after a Q1 earnings beat paired with lowered 2026 guidance.

TE Connectivity Ltd reported strong fiscal second-quarter results, exceeding analyst expectations for both earnings and revenue. However, the shares took a nosedive, likely due to profit-taking.

Uranium is now considered a strategic resource, just like lithium and rare earth minerals. For the past month, the news was dominated by enriched uranium in Iran.

EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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