Soaring energy prices push the pound to a January high against the euro

Golden Ten Data reported on March 9 that as the Middle East conflict escalates, leading to a sharp rise in energy prices, the British pound has risen to a one-month high against the euro. Ebury strategist Matthew Ryan stated in a report: "The UK is not as dependent on energy imports as the eurozone," which is why the pound is outperforming the euro. However, he also noted that the UK remains a net importer of oil and is more susceptible to rising energy prices than the US, so the pound remains weak against the dollar. As inflation is already above target, further interest rate cuts by the Bank of England are currently largely off the table.