The British Pound gained ground on Friday as the United Kingdom’s output numbers improved. In actuality, the United Kingdom’s industrial sector activity increased in November, despite the fact that total Industrial Production stayed stable and in accordance with expectations, contrasting with the preceding fall.
As ECB officials emphasised the importance of waiting for additional economic data before making rate normalisation decisions, the Euro remained largely flat. Looking ahead, ECB senior economist Philip Lane noted that the central bank will have critical evidence by June to decide on a potential series of interest rate decreases, but acting early may be counterproductive.
The US dollar fell slightly this morning as investors looked to a series of upcoming economic reports for clues on when the Fed would start cutting interest rates. For the time being, predictions for early rate cuts were supported by data released on Friday, which showed that producer price index inflation fell more than predicted in December.
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