{"id":44117,"date":"2026-04-06T11:19:13","date_gmt":"2026-04-06T11:19:13","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/44117\/"},"modified":"2026-04-06T11:19:13","modified_gmt":"2026-04-06T11:19:13","slug":"eur-gbp-slips-towards-0-8700-as-subdued-risk-averse-trading-follows-holiday-closures-and-iran-war-escalation-fears","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/44117\/","title":{"rendered":"EUR\/GBP slips towards 0.8700 as subdued, risk-averse trading follows holiday closures and Iran war escalation fears"},"content":{"rendered":"The Euro slipped against the Pound in thin Easter Monday trading, with many markets closed and sentiment cautious. EUR\/GBP traded around 0.8720, down from 0.8735, and stayed within the recent range near 0.8700.\n\nMarkets reacted to comments from US President Donald Trump, who threatened to destroy Iran\u2019s bridges and energy plants if Tehran does not open the Strait of Hormuz before Tuesday at 8 PM. An Axios report said regional mediators are negotiating a 45-day ceasefire that could lead to a peace deal.\n\n

Euro Pound Trading Near Monthly Highs<\/h3>\nEUR\/GBP held near one-month highs as the Euro stayed steadier than the Pound during the month-long Middle East war. ECB policymakers have pointed to a possible rate rise due to higher inflation pressures, while Bank of England Governor Andrew Bailey downplayed near-term tightening.\n\nThe main Eurozone event on Monday is the Sentix Investor Confidence index, which may reflect the effects of the Iran war and energy shock. Sentix is a monthly survey of about 1,600 financial analysts and institutional investors, and it is built from 36 indicators.\n\nThe survey measures views on the current economy and expectations for the next six months. Higher readings tend to support the Euro, while lower readings tend to weigh on it.\n\nLooking back at the market mood in 2025, we see the EUR\/GBP pair was trading near one-month highs around 0.8720. This was driven by significant fears of a wider war involving Iran and the expectation that the European Central Bank would raise rates while the Bank of England would not. That geopolitical risk premium has since vanished from the market.\n\n

Shift In Monetary Policy Outlook<\/h3>\nThe major divergence in monetary policy that we saw as a possibility then has now completely shifted. In 2025, the ECB was seen as hawkish, but today in April 2026, the discussion is about which central bank will cut interest rates first. Recent data shows UK service sector inflation remains stubbornly higher at 5.8% compared to a faster decline in the Eurozone, making the BoE’s job more difficult.\n\nThis change in outlook has weighed on the EUR\/GBP, pushing it away from those 2025 highs. We are now trading closer to the 0.8550 level, as the Pound finds support from the idea that the BoE may have to delay rate cuts longer than the ECB. The old resistance level near 0.8700 now appears very distant.\n\nFor derivative traders, this suggests a change in strategy is needed. The environment no longer favors expecting big upward moves in the pair. Selling call options with strike prices at or above 0.8650 could be a prudent approach to take advantage of the new reality and decaying volatility.\n\nThe Sentix Investor Confidence mentioned last year continues to be a relevant data point for us. The latest reading for April 2026 has improved from the deep lows but remains negative at -5.9, showing that underlying confidence in the Eurozone economy is still fragile. This weak sentiment provides little fuel for a significant rally in the Euro against the Pound.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

Euro slips versus Pound on thin Easter trading; Trump-Iran threats, ceasefire talks, and Sentix confidence eyed.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-44117","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=44117"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44117\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=44117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=44117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=44117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}