Sterling was mostly flat against the dollar at US$1.3378, while the euro was marginally lower at 87.55 pence. But now, traders are more concerned about Japan's longer-term finances than what the Japanese currency is yielding at the moment. Governor Andrew Bailey said the overall direction for rates was lower, but possibly at a slower rate. "We suspect that these wage expectations will come down in the New Year in line with lower headline inflation. In all, we continue to expect 25-basis-point rate cuts in February and April, compared to market pricing of just one cut.

Source: The Edge Markets December 19, 2025 10:05 UTC