Foreign exchange rotation amid rising geopolitical tensions: Pound and euro divergence, who is accelerating?

Question

【Crypto】Geopolitical tensions heat up, and the foreign exchange market experiences turbulence again. Recently, tensions in South America and the Middle East have intensified, with risk aversion sentiment clearly rising, providing support for the US dollar. Data shows that the British pound against the dollar has weakened, but against the euro it has risen to a two-and-a-half-month high—there’s an interesting logic behind this.

Analysts point out that the euro is more sensitive to trade disruptions than the British pound. In other words, under geopolitical shocks, the pound tends to resist declines. However, this rotation may only be a temporary phenomenon, so there’s no need to take it too seriously.

Looking ahead to 2026, the domestic political environment in the UK continues to suppress economic growth, which is unfavorable for the long-term trend of the pound. In contrast, fiscal stimulus policies in the Eurozone could become new drivers of growth, providing fundamental support for the euro. Short-term risk aversion, long-term policy divergence—this is the true picture of the foreign exchange market.

FreeRider · Accepted Answer

This move in the GBP is quite interesting, can it resist declines during risk aversion? It shows that the UK economy itself has no imagination left, no wonder it's been suppressed for a long time. The euro is different; with fiscal stimulus, it can turn around quickly. This round of movement is just the beginning, and we'll see the truth in 2026.

BakedCatFanboy · Answer

This move in GBP is quite interesting; it resists falling during risk aversion, and policy differences are actually suppressing it... Seems like we should keep an eye on the actions around 2026.

POAPlectionist · Answer

The GBP move this time is pretty good, resisting the decline amidst chaos, which is quite interesting... But to be honest, looking at the policy landscape in 2026, the euro's expectation of benefiting from policy dividends is still clearer. Short-term volatility, but in the long run, fundamentals still speak louder.

TheShibaWhisperer · Answer

The GBP move this time is actually quite impressive—short-term resistance to decline, long-term manipulation. Sounds like the story of some projects haha.

On the euro side, fiscal stimulus is strong. Comparing it to those "positive developments" in the crypto world, it's about the same. Let's see how 2026 unfolds.

GasFeeBarbecue · Answer

The GBP move is really interesting this time. It’s resistant to short-term declines but still underperforming in the long run... The EU's stimulus policies seem much more reliable compared to the political deadlock in the UK.

StealthDeployer · Answer

Is the GBP rising to a new high against the euro? Don't pay too much attention to this short-term trend. Look at the policies stimulating Europe in 2026; the euro's fundamentals are the real winner.

ContractFreelancer · Answer

This move in the GBP is quite interesting. It has risen against the euro but weakened against the dollar? Basically, it's because the policies on the UK side are dragging down, and in the long run, it will still be overtaken by the euro.

Foreign exchange rotation amid rising geopolitical tensions: Pound and euro divergence, who is accelerating?

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