Energy import status hinders currency rebound; GBP and EUR both weaken under inflation gloom

Golden Ten Data reported on March 3 that Jane Foley from Rabobank pointed out in a report that rising energy prices have weakened expectations for further interest rate cuts in the UK and sparked speculation about possible rate hikes in the eurozone, but this has not provided much support for either the pound or the euro. She stated, "The fact that the UK and the eurozone are energy importers may currently be a more pressing concern." She believes that, due to the Middle East conflict driving up energy prices, there is uncertainty about the potential damage inflation outbreaks could cause to the economy, making it unlikely for the pound and the euro to perform well.