Weekly Forex Market Outlook 2026 | 23 Feb. – 27 Feb. 2026
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Weekly Forex Market Outlook 2026

23 Feb. – 27 Feb. 2026

Global markets enter a high volatility week as traders prepare for major US inflation data, Federal Reserve rate expectations, Eurozone CPI, German GDP, crude oil price swings, and rising geopolitical tension. The US dollar, euro, yen, gold, and Bitcoin could see sharp moves across major forex pairs. In this Weekly Forex Market Outlook, we break down key catalysts, trading risks, and where smart money may flow next. Scroll down for actionable insights.

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US Consumer Confidence Data February 2026: Will It Move the Dollar and Stock Market?

The US Consumer Confidence report for February will show how Americans feel about jobs, income, and spending. The data is released by The Conference Board. Economists, Federal Reserve analysts, and Wall Street traders closely track this number because strong consumer spending supports US economic growth. If confidence rises, it may signal a strong economy. If it falls, it could show economic slowdown risks.

Impact: Stronger confidence may boost the US dollar and stock market. Weak data could pressure equities and increase expectations of Federal Reserve rate cuts.

President Trump Speech February 2026: Market Impact, Policy Signals, and Economic Outlook

US President Donald Trump will deliver a major speech this week. Lawmakers, government officials, and financial markets will watch closely. He may discuss economic growth, trade policy, tariffs, taxes, and regulation. Investors will analyse his tone and policy direction to understand future government decisions that could affect business confidence and global trade.

Impact : Policy signals on trade, tariffs, or fiscal spending could trigger volatility in US stocks, Treasury yields, and the US dollar.

German GDP Q4 and Eurozone CPI Inflation Data: What It Means for ECB Interest Rates

Germany will release its fourth-quarter GDP growth data, and the Eurozone will publish January inflation figures. These reports are important for the European Central Bank. Policymakers use GDP and CPI inflation data to decide interest rates. Higher inflation may delay rate cuts, while weak growth could increase recession concerns in Europe.

Impact: Strong inflation may push the euro higher and reduce ECB rate cut bets. Weak growth could pressure European stocks and the euro currency.

US Initial Jobless Claims: Key Labour Market Indicator for Federal Reserve Policy

The weekly Initial Jobless Claims report shows how many Americans filed for unemployment benefits. It is one of the fastest labour market indicators available. The Federal Reserve and investors use this data to understand job market strength. Rising claims may signal economic weakness, while low claims show labour market stability.

Impact: Higher jobless claims may weaken the US dollar and support expectations of a rate cut. Lower claims could strengthen confidence in the US economy.

US PPI Inflation and Chicago PMI February 2026: Inflation Pressure and Business Activity Update

The Producer Price Index measures wholesale inflation in the United States. Chicago PMI shows manufacturing and business activity levels. Together, they give early signals about inflation trends and economic momentum. The Federal Reserve monitors these reports when deciding monetary policy and future interest rate changes.

Impact: Hotter inflation data may push bond yields higher and pressure stocks. Weak business activity could increase recession fears and support safe-haven assets.

Federal Reserve Rate Cut Speculation 2026: Will Fed Signals Move the US Dollar This Week?

Financial markets are closely watching Federal Reserve officials for any new comments on interest rates. Even if there is no official meeting, speeches or interviews from FOMC members can move the market. The Fed makes decisions based on inflation data, labor market strength, GDP growth, and financial stability. Traders are trying to understand whether rate cuts will come soon or be delayed.

Impact: Hawkish comments may strengthen the US dollar and push yields higher. Dovish signals could weaken USD and support gold and risk currencies.

US-China Trade Tensions 2026: Tariff Headlines That Could Shake the Forex Market

Any new statement regarding trade relations between the United States and China can quickly affect global markets. Government officials from both countries may comment on tariffs, trade agreements, or economic cooperation. Decisions are usually based on trade balance data, domestic economic pressure, and political strategy. Risk sentiment changes fast when trade tensions rise.

Impact: Rising trade tensions may support safe-haven currencies like USD, JPY, and CHF. Risk-sensitive currencies such as AUD and NZD could face pressure.

Crude Oil Price Volatility and OPEC Signals: Impact on Canadian Dollar and Inflation Outlook

Oil prices remain a key driver for the forex market, especially for the Canadian dollar. Any comments from OPEC officials or sudden supply changes can move crude oil prices sharply. Oil decisions are based on global demand forecasts, production targets, and geopolitical risks. Strong oil prices can influence inflation expectations worldwide.

Impact: Higher oil prices may strengthen the Canadian dollar and lift inflation expectations. Falling oil prices could weaken CAD and reduce inflation pressure.

Geopolitical Tensions 2026: Safe Haven Demand Could Drive Yen and Swiss Franc Higher

Global geopolitical risks such as military conflicts, sanctions, or diplomatic breakdowns can increase market uncertainty. Governments, defence alliances, and global institutions monitor these developments closely. Investors shift funds into safer assets when uncertainty rises. Forex markets react quickly to unexpected geopolitical headlines.

Impact: Increased geopolitical tension may boost JPY and CHF demand. Risk currencies and global equities could face selling pressure during uncertainty.

US Treasury Yields and Bond Market Volatility: Key Driver for USD Pairs This Week

Movements in US Treasury yields strongly influence the US dollar. When bond yields rise, it usually reflects expectations of higher interest rates or strong economic growth. Large institutional investors, central banks, and hedge funds actively trade the bond market. Yield changes are driven by inflation data, fiscal policy, and Federal Reserve outlook.

Impact: Rising Treasury yields may support the US dollar across major pairs. Falling yields could pressure the USD and increase demand for gold and risk assets.

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Weekly Forex Market Outlook 23 Feb. – 27 Feb. 2026