Pound Sterling (GBP)

The British Pound gained ground against most major currencies last week but struggled to sustain its rise against the US Dollar, remaining in a holding pattern. The pair’s movement is influenced by risk sentiment and upcoming US economic data, including inflation reports. Investors remain cautious, awaiting potential shifts in market conditions.

Euro (EUR)

The Euro is focused on the European Central Bank’s upcoming rate decision, with another 25-basis-point cut expected—the fourth this year. While inflation in the Eurozone ticked up slightly in November and remains on track to meet the ECB’s 2% target, other challenges persist. Political instability, increasing tariff risks, and slowing business activity have weakened the currency despite improving economic data, leaving the ECB in a tough position with limited positive outlooks.

U.S. Dollar (USD)

The Euro is focused on the European Central Bank’s upcoming rate decision, with another 25-basis-point cut expected—the fourth this year. While inflation in the Eurozone ticked up slightly in November and remains on track to meet the ECB’s 2% target, other challenges persist. Political instability, increasing tariff risks, and slowing business activity have weakened the currency despite improving economic data, leaving the ECB in a tough position with limited positive outlooks.