Published: 12/12/2024 By ECAP
The British Pound traded without any clear direction yesterday, as the absence of significant UK economic data left investors with little motivation to push the currency in either direction. Ongoing concerns about the UK's recent weak economic performance also weighed on GBP sentiment. With no major UK data set for release today, the Pound is expected to continue fluctuating without a clear direction.The Euro was relatively flat during yesterday’s trading session as investors took a wait-and-see approach ahead of the ECB’s final interest rate decision of the year. While a rate cut is broadly expected, uncertainty surrounding the ECB's future guidance has made Euro investors cautious. The focus will be on the ECB's decision later today – if the bank signals further rate cuts ahead, the Euro could experience renewed selling pressure.
The U.S. Dollar strengthened yesterday after the latest U.S. consumer price index revealed inflation had risen to a four-month high in November. This led some Dollar investors to adjust their expectations for Federal Reserve rate cuts in early 2025. Later today, the release of the U.S. producer price index could offer further support for the Dollar if factory-gate prices indicate continued inflationary pressures.
Data supplied by GC Partners