British pound holds steady following sharp losses amid rate cut expectations and political uncertainty
Sterling steadied on Thursday as investors weighed cooling inflation against political turmoil. Markets eye a March rate cut amid the arrest of Prince Andrew.
Insights:
Sterling steadied on Thursday, February 19, 2026, after three days of declines following the release of economic data from the United Kingdom 
GB that showed a rise in the jobless rate and weaker inflation. The data revealed that the jobless rate rose to 5.2% in the fourth quarter and January inflation hit its lowest level since March 2025. These developments strengthened expectations in the money markets of imminent Bank of England rate cuts, significantly affecting currency pricing and investor positioning.
GB that showed a rise in the jobless rate and weaker inflation. The data revealed that the jobless rate rose to 5.2% in the fourth quarter and January inflation hit its lowest level since March 2025. These developments strengthened expectations in the money markets of imminent Bank of England rate cuts, significantly affecting currency pricing and investor positioning.
