Daily Market View 18-12-2025 (Lite)

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Daily Market View 18-12-2025 (Lite)
1:01

BoE Cuts Expected, ECB Holding Firm to Close Out 2025

1 Minute Market Rundown

  • The BoE is expected to cut its bank rate to 3.75% from the current 4%. The latest data shows weak GDP growth, with unemployment rising and inflation cooling. GBP/USD retreated sharply after UK inflation fell by more than expected in November.

  • The ECB is expected to hold key rates unchanged for the fourth consecutive meeting. ECB President Lagarde unlikely to offer fresh clues in the press conference following the announcement.

  • US Consumer Price Index is forecast to rise 3.1% YoY in November, slightly higher compared with September.

 

Lite Version:

This analysis is provided in brief, as David Stritch is currently away, but will return with a full version on Friday 19th December 2025.

Key Themes

  • Central Banks: BoE and ECB decisions will be pivotal for GBP pairs.
  • US CPI: possibly alter the likelihoods of a January Fed rate cut.

Markets Today

*Please be aware the below rates represent the market rate at 8:00 AM, contact your Caxton dealer or check online for a live quote.

Currency Pairs Open
 GBP/USD  1.3356
 GBP/EUR 1.1388
 GBP/CAD 1.8429
 GBP/AUD 2.0258
 GBP/NZD 2.3177
 GBP/JPY 207.936
 EUR/USD 1.1729
 USD/JPY 155.48
USD/CAD 1.3783

 

Today's Economic Calendar

Major Economic Releases (All times in GMT)

GBP: BoE Interest Rate Decision
EUR: ECB Main Refinancing Operations Rate 
USD: CPI Prints
  
 

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