Jeremy Stretch — Editor, Financial Times (2 trade ideas)

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Date Ticker Direction Thesis Source
Feb 18, 2026
AUD /GBP
LONG The UK faces political risk (Reform UK challenging BoE mandate) and a dovish pivot. Conversely, Australia has tight monetary policy and a strong metals/commodities backdrop. Diverging central bank paths (BoE cutting, RBA holding/tight) plus a commodity boom favors the Aussie Dollar over the British Pound. LONG AUD / SHORT GBP. A collapse in global commodity demand (specifically China). Bloomberg Markets
Lagarde Reported to Leave ECB Before Term End...
Feb 18, 2026
EUR
LONG Rumors suggest Christine Lagarde may leave the ECB early. The market initially sold the Euro on uncertainty. Potential successors (e.g., Joachim Nagel of Bundesbank) are significantly more hawkish than Lagarde. A hawkish shift at the ECB supports the currency. LONG EUR (Buy the dip on leadership rumors). Political instability in France (Macron/Le Pen dynamics) overshadowing monetary policy. Bloomberg Markets
Lagarde Reported to Leave ECB Before Term End...