Published: 12/02/2026 By ECAP
UNEXPECTED DATA
The British pound remains under pressure as UK economic growth disappointed in the fourth quarter, rising just 0.1%. Services stagnated and construction contracted, though production provided modest support. Annual growth slowed to 1%, missing expectations. Weak data reinforce concerns about a flat economy and soft labour market, increasing expectations of potential rate cuts and halting the pound’s recent upward momentum.
The Euro weakened midweek as renewed geopolitical tensions weighed on sentiment. Fresh Russian strikes on Ukraine and diminishing confidence in diplomatic progress dampened optimism, pressuring the single currency. With no significant Eurozone economic data to offer support, the Euro remained vulnerable to external developments. Attention now turns to upcoming remarks from European Central Bank policymakers, which could provide guidance on the outlook for monetary policy.
The US Dollar strengthened after a stronger-than-expected US jobs report eased concerns about slowing momentum in the labour market. The upbeat data reinforced expectations that the Federal Reserve may delay cutting interest rates until the summer, supporting the Dollar’s rebound. Attention now shifts to upcoming US inflation figures, which could shape interest rate expectations and determine whether the Dollar continues to gain ground.Data supplied by GC Partners