Forex February 2026 Outlook

As January 2026 concludes, currency traders are at the crossroads amid central bank policy divergence and technical developments. Since delivering 175 basis points worth of cuts since September 2024, the Federal Reserve is at the crossroads. At the same time, the European Central Bank (ECB) has concluded its easing cycle, while the Bank of Japan (BoJ) looks to embark its first meaningful tightening cycle in decades . Technically, the U.S. dollar is performing poorly against major currencies and is near multi-month lows. We will take a look at the greenback versus the USD/JPY, EUR/USD and GBP/USD from both a fundamental and technical perspective.
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This has been written, compiled, and technically developed by the Sigmanomics team. The depth team includes, but is not limited to, Mikhail Antropov, Ronald Francois, Matthew Williamson, and Solieman Younus.






