UK: Weekly FX Market Update 23 February

GBP

• The pound struggled after soft average earnings, and a falling CPI led to speculation regarding a March 19^th rate cut.

• The Gorton and Denton by-election this Thursday, 26^th, is keeping the focus on an under-pressure PM Starmer.

• Will falling inflation and political nerves continue to push the Pound lower?

EUR

• Europe prepares for future politics with ECB President Lagarde ending her term early - FT reports.

• Will German Final GDP give the Eurozone some positive news?

• Can German Preliminary CPI remain steady and keep the ECB interest rate policy on hold?

USD

• Better-than-expected Durable Goods data and a slightly more hawkish FOMC support the Dollar.

• Elsewhere, the FT reports that fund managers have taken the most bearish stance on the USD in more than a decade, because of unpredictable policymaking.

• Just as the president’s IEEPA tariffs are struck down, he responds by announcing temporary section 122, 15% tariffs across the board. How will the markets react?

Mon Feb 23

All Day Holiday Japan/China

09:00 EUR German IFO Business Climate

13:00 USD FOMC Waller Speaks

17:30 EUR ECB President Lagarde Speaks

Tue Feb 24

13:00 USD FOMC Goolsbee/Collins Speak

14:10 USD FOMC Waller Speaks

14:35 USD FOMC Cook Speaks

15:00 USD Consumer Confidence

Wed Feb 25

00:30 AUD CPI

05:00 JPY Core CPI

07:00 EUR German Final GDP

10:00 EUR Final CPI

Thu Feb 26

GBP All Day Gorton & Denton By Election

09:00 GBP MPC Lombardelli Speaks

13:30 USD Unemployment Claims

23:30 JPY Tokyo Core CPI

Fri Feb 27

07:00 EUR German Prelim CPI

13:00 GBP MPC Pill Speaks

13:30 CAD GDP

13:30 USD PPI