Published: 23/12/2025 By ECAP
MOMENTUM HOLDS
The British Pound is holding firm and has strengthened against the Dollar as recent US weakness continues to support sterling. While UK economic data remains mixed, the absence of fresh negative news has allowed the currency to extend gains in thin, pre-holiday markets. With little UK data due today, sterling’s near-term direction is likely to be driven by global sentiment rather than domestic developments.
The Euro is steady as markets slow heading into the Christmas period. Recent gains against the Dollar have stabilised, supported by a calm policy backdrop and limited new economic information. With no major Eurozone data scheduled today, the Euro is likely to trade within narrow ranges, taking its cues from broader market moves and holiday liquidity.
The US Dollar remains on the back foot after recent losses, with sentiment still soft following last week’s policy decisions. A lack of fresh US data and early market closures are keeping activity subdued. In the absence of new catalysts, the Dollar may remain vulnerable to further modest weakness as year-end positioning and thin liquidity dominate trading conditions.
Data supplied by GC Partners