---
title: Daily Market View 05-05-2026
description: Amidst rising tensions in the Gulf, the dollar softens while the UK braces for local elections and key economic data. Key interest rate decisions loom.
---

[FX News | Caxton Daily Market View ](https://caxton.io/fx-news)

# [Daily Market View 05-05-2026](https://caxton.io/fx-news/daily-market-view-05-05-2026)

 Written by [David Stritch](https://caxton.io/fx-news/author/david-stritch) | May 5, 2026 8:27:33 AM

# Concerns over re-ignition in Iran war

USD -

With growing concerns that the situation will slide back towards kinetic conflict in the Gulf, USD is caught in two minds, weakening because of lingering expectations of Fed rate cuts this year, or strengthening on the back of higher Oil. Just how the US economy is continuing to perform under this strain will be an interesting read on Friday, when jobs figures release.

Indeed, with the 4 week truce potentially breaking, UK local elections and and slew of economic data to release this week, there's plenty of opportunity for serious disruption. Whether the PM can, or will hang on, should things go very bad for Labour on Thursday, is the major UK focus. I suspect he will, given there is no immediate replacement and any new leader would have inherited a very bad situation indeed.

Markets Today

*Please be aware the below rates represent the market rate at 7:30 AM, contact your Caxton dealer on check online for a live quote

## Today's Economic Calendar

**Major Economic Releases (All times in GMT)**

  12:00- Bank of England Interest Rate Decision   
13:15- European Central Bank Interest Rate Decision 

 

 

 

[View full post](https://caxton.io/fx-news/daily-market-view-05-05-2026)

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