Sterling rises slightly as investors weigh rate outlook and political tension

Sterling edged up against the dollar and the euro on February 25, 2026, as investors focused on interest-rate divergence and broader market sentiment. This movement follows recent signals from the Bank of England, including comments regarding a possible interest rate cut in March and a dovish shift observed in early February. These fluctuations in sterling and the UK gilt market are significant as they influence financial conditions and market positioning in the United Kingdom GB ahead of critical fiscal events.