The new year has begun with sterling carving out fresh momentum against the euro, a development that reflects shifting confidence in relative monetary trajectories as markets recalibrate after the holiday lull. In the first days of trading, GBP/EUR climbed above a technical resistance level it had previously struggled with, reaching its highest point since last autumn.
While sterling has proved resilient versus the euro, its performance against the US dollar has been more mixed. GBP/USD eased back from December’s peaks, extending losses in the initial sessions of 2026 despite having begun the year above the 1.34 mark.
A key influence on early‑year currency positioning has been renewed geopolitical and policy uncertainty emanating from the United States. Markets are parsing the implications of significant US action in the Western Hemisphere, which has bolstered demand for the US dollar as investors reassess risk premia and safe‑haven flows. These dynamics have underpinned broader dollar strength and encouraged a rotation out of some risk assets into the greenback, at least in the near term.
Finseta Plc (LON:FIN), formerly Cornerstone FS PLC, is a United Kingdom-based foreignexchange and payments company offering multi-currency accounts and payment solutions to businesses and individuals through its global payments network.
