Published: 24/12/2025 By ECAP
HOLIDAY LIFT
The British Pound is firmer this morning and continues to hold ground against the Dollar as markets expect the Bank of England to move cautiously after last week’s decision. While the UK outlook remains mixed, the signal that further changes will be gradual has helped support sterling. With no major UK data due and Christmas Eve likely to thin liquidity, moves may remain limited and sentiment-driven.
The Euro remains strong, extending gains for a third session as confidence holds into year end. Momentum has been supported by a steadier Eurozone backdrop and a softer Dollar, though upside may slow as markets enter holiday conditions. With no key Eurozone releases today and Christmas Eve trading expected to be light, the Euro is likely to consolidate recent gains rather than push sharply higher.
The US Dollar remains under pressure as markets continue to adjust to expectations of slower growth and a softer labour market in the US. Attention later today is on US jobless claims, which may influence short-term sentiment. However, with Christmas Eve limiting participation and early market closures, price action is likely to be muted, with broader trends carrying more weight than individual data points.
Data supplied by GC Partners