Dollar Falls as ECB, BoE Caution and Oil Lifts Euro, Pound

The U.S. dollar fell on Thursday, April 30, 2026, after officials at the European Central Bank and the Bank of England expressed caution about inflation. Brent crude climbed near $120, supporting gains in the euro and the pound.

Bank of England Governor Andrew Bailey warned that “traditional interest-rate tools simply cannot stop the direct, supply-side inflationary shock caused by soaring energy prices.” ECB President Christine Lagarde used a guarded tone and pointed to pressure on the euro-area recovery from triple-digit oil prices and logistical constraints.

The Federal Reserve, the Bank of Canada and the Bank of Japan completed a week of policy announcements alongside the ECB and BoE. Officials said they would act if longer-term inflation expectations began to diverge from 2 percent but offered few timelines for further rate increases.

Federal Reserve Chair Jerome Powell's press conference on Wednesday did not adopt the more hawkish tone some market participants had expected, contributing to a softer dollar in early trading. Foreign exchange markets showed renewed volatility, and there were early signs of intervention that supported the Japanese yen.

Brent crude reached levels last seen in 2022 near $120 before easing. Central bankers flagged those energy price swings as a supply-driven shock beyond the direct control of monetary policy. Market participants continued to monitor oil prices and geopolitical developments for their implications on inflation expectations.

On technical charts, GBP/USD has traded in a roughly two-week range between about 1.3450 and 1.3600. The pair moved back above the four-hour 50-period moving average and faces resistance around 1.3550–1.3600; a clear break above the April high near 1.3601 would point toward the 1.37 area. Near-term support sits around 1.3420–1.3440 and 1.3250–1.3310.

EUR/USD found a short-term bottom after the Fed meeting and is testing its four-hour 50-period moving average at about 1.1718. A decisive move above roughly 1.1725 would bring resistance between 1.18 and 1.1860 into view; key support levels are near 1.1635–1.1636 and the lower band around 1.1540–1.1570.