Treasury Hub Markets Bulletin – Q2 2026

This edition reviews the key market developments during Q2 2026 and highlights the themes currently shaping global markets:

• Geopolitical tensions in the Middle East remained the dominant market driver, with developments surrounding Iran and the Strait of Hormuz continuing to influence oil prices, inflation expectations and investor sentiment.
• Oil prices experienced significant volatility during the quarter, easing from earlier highs before rebounding as geopolitical tensions intensified once again.
• The ECB increased its Base Rate by 0.25% in June, with markets now anticipating further rate increases as inflation risks persist.
• 3-month Euribor moved higher during Q2, reflecting the changing interest rate outlook and expectations of a “higher for longer” rate environment.
• Yield curves across the major currencies remain broadly normal, although medium-term rates have risen as markets price in higher inflation expectations.
• The US Dollar and Sterling strengthened against the Euro during the quarter, providing some relief for exporters despite ongoing currency market volatility.
• Equity markets recovered strongly following early-quarter weakness, with the Nasdaq leading gains, while gold retreated after two exceptionally strong years of performance.
• Irish and UK economic indicators presented a mixed picture, with manufacturing and services remaining resilient in Ireland, while weakness persisted across the UK construction sector.
• This quarter also includes an overview of the Irish banking sector together with an assessment of the fiscal challenges facing Government ahead of Budget 2027.

As we move into the second half of 2026, oil prices, inflation and geopolitical developments remain the key variables influencing financial markets. Businesses should continue to monitor interest rate expectations and broader economic conditions while maintaining flexibility in financing and treasury strategies as markets respond to an increasingly uncertain global environment.

Download the Treasury Hub Markets Bulletin – Q2 2026 here.