Pound Sterling (GBP)

The British Pound struggled yesterday due to a lack of UK economic data, leaving the currency unsupported. This led investors to concentrate on growing concerns about the UK’s economic outlook, causing the Pound to decline. Today, Sterling faces additional pressure as the latest GDP figures reveal the British economy contracted for a second consecutive month in October, heightening worries among GBP investors.

Euro (EUR)

The Euro saw turbulence yesterday after the European Central Bank announced its final interest rate decision for 2024. As expected, the ECB cut rates by 25 basis points and signalled more reductions are likely in the coming year. Despite this, the Euro experienced significant fluctuations post-announcement, ultimately strengthening against weaker currencies.

U.S. Dollar (USD)

The U.S. Dollar gained strength yesterday following the release of November’s producer price index, which exceeded expectations and underscored persistent inflationary pressures in the U.S. Coupled with Wednesday’s rise in consumer price inflation, this prompted markets to scale back expectations for Federal Reserve rate cuts. With minimal major U.S. economic data scheduled for today, the Dollar’s movement may hinge on market risk sentiment.