This week’s combined episode of Currency Exchange and Bondcast focuses on the ongoing Middle East conflict and its impacts on currency and rates markets. This episode features edited highlights from a client webinar hosted on Tuesday, featuring host Imogen Bachra (Head of Economics and Market Strategy) and guests Scott Livingstone (International Advisor) and Paul Robson (Co-Head of G10FX Strategy).

They discussed:

• Management of ammunition and defence resources by regional players.
• Political pressure on President Trump to conclude this initial phase swiftly.
• Expected continuation of heightened military activity over the next few days.
• Monitoring Iranian missile, drone, and maritime operations, including possible threats to the Strait of Hormuz.
• Indicators for de-escalation: signs of pragmatic politics or regional diplomatic intervention.
• Importance of maritime security in global energy markets.
• Currency markets responding as expected: dollar strength sterling resilience in cross-currency pairs.
• Volatility in bond markets reflecting both safe-haven demand and concerns over defence spending and future inflation.
• Key market drivers to watch.