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Feb 18, 2026
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LONG
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UK CPI is falling (3% headline), but more importantly, youth unemployment is at a 10-year high and Jefferies forecasts UK growth at only 1% (vs market 1.5%). Weak growth and a cracking labor market force the Bank of England to cut rates aggressively (75bps expected by Jefferies in 2026). Lower rates weaken the currency but boost bonds. LONG UK GILTS (betting on yields falling) and SHORT GBP (specifically against AUD or USD). Services inflation remains sticky at 4.4%, which could delay cuts. |
Bloomberg Markets
Lagarde Reported to Leave ECB Before Term End...
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