GBP: This morning, the British Pound continued its upward trend from last week, hitting a high of over two months vs the US Dollar. The step was taken in response to statistics indicating that, following three months of contraction, British businesses surprisingly recorded a modest recovery to growth in November. In the end, the British Pound was expected to rise by about 3.8% for the month, which would have been the highest monthly gain in a year.

EUR: As market players await a plethora of news in the coming days, the Euro steadied this morning, maintaining its recent gains. The most significant data release of the week is the Eurozone flash CPI inflation for November, which is scheduled for release on Thursday. It is anticipated that the headline and core measures will continue to decline, coming in at 2.8% and 3.9%, respectively.

USD: The markets are waiting for important economic data from the nation this week, and the US dollar lost more ground and was headed for a 3% loss this month, its worst monthly performance in a year. The Fed’s favourite inflation indicator, PCE pricing data, is due on Thursday along with a second estimate of the third-quarter GDP. Any indications of slowing economic expansion and inflation are likely to reinforce the Fed’s shift away from aggressive policy, which will weaken the US dollar.

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