Published: 13/02/2026 By ECAP
UNDER PRESSURE
The British Pound remains under pressure after weak growth and dovish signals from the Bank of England reinforced expectations of further rate cuts. Flat output, softer services activity and cooling labour conditions have weighed on sentiment. Political uncertainty surrounding Keir Starmer has added to fiscal concerns. With markets alert to incoming data, the pound risks extending losses if economic momentum fails to improve.
The Euro has traded in a narrow range, supported by expectations of steady late-year growth and cautious optimism around diplomatic efforts. Confirmation of firmer expansion could offer modest backing. Investors are also alert to signals from the European Central Bank, as policymakers balance inflation risks against slowing momentum. Overall, the single currency remains stable but sensitive to policy guidance and geopolitical developments.
The US Dollar edged lower as improved market sentiment reduced demand for safe-haven assets, trimming gains made after strong non-farm payrolls data. Investors had previously viewed robust employment figures as a reason for the Federal Reserve to delay interest rate cuts. Attention now turns to upcoming US inflation data, with forecasts pointing to cooling price pressures that could influence monetary policy expectations.Data supplied by GC Partners