Daily currency update
The US dollar remained near a two-year high this morning as strong economic data prompted traders to scale back expectations of US rate cuts in 2025. Meanwhile, concerns over Britain’s fiscal health kept the struggling pound in the spotlight.
As President-elect Donald Trump prepares to return to the White House next week, attention has shifted to his anticipated policies, which analysts predict will stimulate growth but may also heighten inflationary pressures.
Key movers
Sterling has faced a challenging few days, sliding to a 14-month low against a basket of currencies, as surging government bond yields highlighted market concerns over the state of the UK’s public finances. While the pound has edged up slightly this morning, its gains remain modest.
Expected ranges
GBP/USD: 1.2205 – 1.2275 ↓
GBP/EUR: 1.1865 – 1.1935 ↓
EUR/USD: 1.0225 – 1.0295 ↓
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