Published: 26/02/2026 By ECAP
GORTON & DENTON
The British Pound was subdued amid political uncertainty ahead of the Gorton and Denton by-election, viewed as a crucial test for Keir Starmer’s leadership. With no fresh UK data to guide markets, investors avoided major positions. A defeat is largely priced in, but a surprise Labour hold could bolster Starmer, ease leadership speculation, reduce political risk premium and support Sterling heading into upcoming local and devolved elections.
The Euro wavered after weaker-than-expected German consumer confidence highlighted fragility in the Eurozone’s largest economy. Although Germany’s final fourth-quarter figures confirmed a return to growth, sentiment remained cautious. Ongoing Russia-Ukraine developments kept markets rangebound, with hopes of continued negotiations offering limited reassurance. Attention now turns to upcoming Eurozone economic sentiment data and remarks from the European Central Bank for clearer direction.
The US Dollar has come under pressure for a second straight day, weighed down by worries about the economic impact of President Donald Trump’s trade approach and softer Treasury yields. While the Federal Reserve is comfortable holding rates steady, it is not committing to cuts. With growth still solid and policy decisions made meeting by meeting, the Dollar remains sensitive to incoming data and political developments.Data supplied by GC Partners