Pound Sterling (GBP)

The British Pound traded sideways yesterday, lacking clear direction as the absence of notable UK economic data gave investors little incentive to drive the currency up or down. Lingering concerns over the UK’s recent weak economic performance continued to dampen sentiment toward the Pound. With no significant UK data scheduled for release today, the currency is likely to remain directionless.

Euro (EUR)

The Euro remained mostly stable during yesterday’s session as investors adopted a cautious stance ahead of the European Central Bank’s (ECB) final interest rate decision of the year. Although a rate cut is widely anticipated, uncertainty about the ECB’s future guidance has kept Euro investors hesitant. The market’s attention is now on today’s ECB announcement – any indication of further rate cuts could put renewed selling pressure on the Euro.

U.S. Dollar (USD)

The U.S. Dollar strengthened yesterday following the release of November’s consumer price index, which showed inflation reaching a four-month high. This prompted some Dollar investors to revise their expectations for Federal Reserve rate cuts in early 2025. Later today, the producer price index report could further support the Dollar if it reveals continued inflationary pressures at the factory level.