Euro extends losses against British Pound amid high Oil prices and risk-off markets | FXStreet

The euro extended losses against the British pound amid high oil prices and risk-off sentiment. EUR/GBP slid to nearly two-week lows at 0.8560 after trading near 0.8600 on Friday. The report links the pressure on the single currency to rising Brent crude near $104 per barrel, up more than 20% over two weeks, driven by Middle East supply concerns. It notes reports that Iran-backed Houthi advances on the Red Sea coast could enable closures affecting the Strait of Bab el-Mandeb, forcing Gulf shipments to reroute via the Suez Canal and raising freight costs. With Strait of Hormuz described as practically closed and a reopening meeting postponed, investors are watching the Bank of England decision on Thursday for clues. Economists at Commerzbank expect the BoE to keep rates unchanged despite market bets for tightening.