Published: 19/02/2026 By ECAP
POLICY PRESSURE
The British Pound remains under pressure after softer inflation and weak labour market figures strengthened expectations of a Bank of England rate cut in March. Inflation slowed to 3.0% in January, the lowest level since last spring, while unemployment has edged higher. Markets now see a strong chance of a cut next month. Political uncertainty and slowing growth continue to weigh on sentiment.
The Euro is holding relatively steady despite mixed news. There has been speculation that ECB President Christine Lagarde could leave before her term ends, although no decision has been confirmed. For now, markets remain focused on economic data rather than leadership rumours. Attention turns to upcoming Eurozone growth figures, which could influence short-term direction.
The US Dollar is firmer following the latest Federal Reserve minutes, which showed policymakers remain cautious about cutting rates too quickly. Ongoing geopolitical tensions, including reports of possible US military action involving Iran, have also supported demand for the Dollar. Investors now look ahead to US jobless claims data today and Friday’s key inflation release.Data supplied by GC Partners