Currency news / March 18, 2026

Sterling steadies ahead of central bank super Wednesday

3 min read Thanim Islam

Thanim IslamMarch 18, 2026

Market snapshot:

The pound gained for a second consecutive session as the dollar weakened ahead of major central bank decisions from the Fed, BoE, and BoC
Markets are bracing for policy guidance on how central banks will balance elevated energy prices from Middle East tensions against inflation concerns

Yesterday's currency recap

Sterling extended gains for a second straight session, as the dollar retreated ahead of Wednesday's packed central bank calendar. The pound benefited from broad dollar weakness as traders positioned cautiously before the Federal Reserve's policy decision. Overnight, Asian currencies showed mixed performance with the yen strengthening on intervention concerns, while the dollar consolidated in a narrow range as investors awaited clarity on how central banks will navigate the conflicting pressures of elevated energy prices and inflation risks stemming from the ongoing Middle East conflict.

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	0.11%	1.8779
GBPCAD	-0.06%	1.8296
GBPCHF	-0.25%	1.0507
GBPDKK	-0.11%	8.6575
GBPEUR	-0.11%	1.1585
GBPJPY	0.11%	212.15
GBPNOK	-0.11%	12.8092
GBPNZD	0.01%	2.2797
GBPSEK	-0.08%	12.4022
GBPUSD	-0.04%	1.3351

*Daily move - against G10 rates as of 17:00 GMT, 17.03.26
** Indicative rates - interbank rates as of 17:00 GMT, 17.03.26

Key data points

Currency	Event	Period	Consensus	Previous
EUR	CPI YoY	Feb F	1.90%	1.90%
EUR	CPI MoM	Feb F	0.70%	0.70%
EUR	CPI Core YoY	Feb F	2.40%	2.40%
CAD	Bank of Canada Rate Decision	18-Mar	2.25%	2.25%
USD	PPI Final Demand MoM	Feb	0.30%	0.50%
USD	PPI Final Demand YoY	Feb	3.00%	2.90%
USD	FOMC Rate Decision (Upper Bound)	18-Mar	3.75%	3.75%

What we think

Today's focus falls on the Federal Reserve and Bank of Canada announces policy decisions, with both widely expected to hold rates steady. The critical focus will be on how policymakers address the conflicting pressures of elevated energy prices from the Middle East conflict against their inflation mandates.

Looking ahead, the tone from today's Fed commentary could set the direction for G10 currencies, particularly if Chair Powell signals concern about energy-driven inflation persistence. With currency volatility remaining subdued on the surface, but traders loading up on protection against extreme moves, any hawkish surprises from the central banks could trigger sharp repositioning across FX markets.

Sterling faces a crucial test tomorrow when the Bank of England delivers its decision alongside the ECB, BoJ, and SNB.

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