As investors gear up for pivotal policy announcements from the Bank of England (BoE) and the European Central Bank (ECB), market volatility looms. The GBP/USD exchange rate is currently trading at 1.2400, showing a cautious sentiment ahead of the BoE's decision. Analysts anticipate potential interest rate hikes, which could bolster the British pound's strength against the USD.
Meanwhile, the euro remains under pressure as traders await US inflation data that could influence Federal Reserve policy. The EUR/USD pair is hovering around 1.0700, reflecting mixed market sentiment. A higher-than-expected inflation reading could prompt the dollar to strengthen further, impacting the euro's exchange rate and overall trading dynamics in the forex market.
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Data Source: FX Killer Analysis Team Updated: 2025-12-18 07:22
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.