Market insights

The Pound Is At The Highest Rate Since 2022 v The Euro

The Pound is holding the breakout at this stage versus the Euro.

With Sterling strong overall and poor economic and political news out of the Eurozone, it's hardly any wonder.

The ECB is expected to knock 0.25% off its base rate later and bring their deposit rate down to 3%.

A shock result of them not cutting could be the only thing to knock the Pound of its pedestal.

This will be followed by the ECB press conference which has historically sometimes caused volatility in Euro rates.

Against the Dollar the Pound has little volatility with the US inflation report coming in bang in line with expectation.

However the UK releases a swathe of data before breakfast tomorrow.

Expect a consumer confidence reading, manufacturing and production numbers, and a GDP reading all by breakfast.

For the latter monthly growth of 0.1% is predicted.

Anyone trading Pounds and Euros may want to take some risk off the table today.

Business news in the UK covers the expected disruption in rail services over Christmas as new employment contracts and staff shortages kick in.

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Economic calendar

EUR: 13:15 ECB Interest Rate Decision

EUR: 13:45 ECB Press Conference

UK: Friday 00:01 Gfk Consumer Confidence

UK: Friday 07:00 GDP Report

UK: Friday 07:00 Manufacturing and Production Numbers

As ever we look forward to keeping you in the loop and look out for our next update.

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