As the US ousted Venezuelan President Nicolas Maduro, the pound fell against the US dollar, but rose to a two-and-a-half-month high against the euro. Monex Europe analysts pointed out in the report that the dollar trend was boosted by safe-haven demand caused by geopolitical tension in Venezuela and Iran. They said that the euro showed greater sensitivity to trade disruptions, which contributed to the excellent performance of the pound against the euro, although this trend may only be temporary. “Entering 2026, we see that the domestic political environment in the UK is still not conducive to economic growth and the British pound,” they said. By contrast, the euro is likely to benefit from Eurozone fiscal policy's stimulus to growth.

As the US ousted Venezuelan President Nicolas Maduro, the pound fell against the US dollar, but rose to a two-and-a-half-month high against the euro. Monex Europe analysts pointed out in the report that the dollar trend was boosted by safe-haven demand caused by geopolitical tension in Venezuela and Iran. They said that the euro showed greater sensitivity to trade disruptions, which contributed to the excellent performance of the pound against the euro, although this trend may only be temporary. “Entering 2026, we see that the domestic political environment in the UK is still not conducive to economic growth and the British pound,” they said. By contrast, the euro is likely to benefit from Eurozone fiscal policy's stimulus to growth.