FX markets

Daily Market View 18-02-2026

Listen to this daily briefing

1:20

UK inflation at March 2025 low of 3%

1 Minute Market Rundown

UK CPI drops to 3% from 3.4%, marking the lowest overall inflation in the UK since March 2025
Pound drops against the Dollar, but propped up against the Euro by rumours of Lagarde's future
Move downwards in inflation likely makes a March BoE cut a certainty

GBP-

UK inflation fell to a March 2025 low in January, according to figure released by the ONS this morning.

Food and transport proved to be the two biggest drops, whilst housing costs and alcohol also slowed their rate of inflation. The figures provide the ideal situation for doves of the Bank of England to assert themselves at the March meeting, making a 0.25% interest rate cut a near certainty.

Screenshot 2026-02-18 084211

The Pound has dropped against the Dollar, although remains elevated against the Euro as the FT this morning reported that ECB President Christine Lagarde that she was preparing to step down early.

The reason given for this was so that the European Government’s could replace her ahead of a likely poor run of elections in 2027, especially the French election in April, whether the right is currently pitted to come out in top. Such big rumours are naturally hurting the Euro, giving GBPEUR trades some vital time to get out before things get worse.

Markets Today

*Please be aware the below rates represent the market rate at 8:00 AM, contact your Caxton dealer or check online for a live quote.

Today's Economic Calendar

Major Economic Releases (All times in GMT)

No major releases.

Book Currency Workshop

Learn how market shifts impact your FX need or your business, directly from our analyst in a free consultation by good old fashioned phone call.

Book now

Sign up for the monthly outlook

The currency markets never sit still. Neither should your plans. Join 45 minutes of practical, jargon-free analysis on what’s moving the markets—and what it means for you or your business.