DAX, GBP/USD Forecast: 2 Trades to Watch The DAX, along with its European counterparts, declined on Tuesday as investors grappled with the potential economic fallout from a prolonged Middle East conflict. The war in the region shows no signs of easing, with Iran launching fresh attacks on the United Arab Emirates and Tehran denying any interest in ceasefire talks. Oil prices remain elevated at around $100 per barrel, with the Strait of Hormuz remaining a focal point of geopolitical tension. As the conflict enters its seventeenth day, President Trump criticized nations for failing to commit to reopening the strait, while the European Union opted against expanding its naval operations in the area. The prolonged conflict and disrupted energy supplies are likely to keep oil prices high, placing pressure on oil-importing regions like Europe. In addition to geopolitical developments, attention is shifting toward the European Central Bank’s rate decision, where the central bank is expected to maintain interest rates at 2%. The focus will be on the economic outlook, particularly amid concerns about stagflation from the energy crisis. Germany’s ZEW economic sentiment index is also due today, with expectations of a decline from its March reading of 58.3. Utilities and energy companies have outperformed in recent trading, reflecting market sentiment toward energy-related risks. Meanwhile, the GBP/USD pair is falling toward 1.3250 in the European session after failing to hold above the 1.33 level. The pair remains under pressure as safe-haven demand for the U.S. dollar increases amid uncertainty over the Middle East conflict. Markets are also closely watching the Federal Reserve and Bank of England’s policy announcements later this week. The Bank of England is expected to leave interest rates unchanged at 3.#iran #united_arab_emirates #middle_east_conflict #european_central_bank #dax
