EUR/USD hlds above 1.1700 ahead of ECB meeting – BBH

EUR/USD trades above 1.1700 as markets await today’s European Central Bank (ECB) meeting. The central bank is expected to keep rates at 2.00%, with President Lagarde’s remarks on future hikes likely to influence the euro’s near-term direction, BBH FX analysts report.

ECB expected to keep policy rate steady at 2.00%

"EUR/USD is down but trading above yesterday’s low around 1.1703. ECB is widely expected to leave the policy rate unchanged at 2.00% for a fourth consecutive meeting. The statement and updated macroeconomic projections should highlight that the ECB is in a good place to keep rates on hold for some time."

"Watch out to see if ECB President Christine Lagarde pushes back against market pricing for rate hikes or shows she is comfortable with them; if she’s comfortable, it will give EUR a boost."

Dec 18, 2025

GBP/USD holds above 1.3310 ahead of BoE rate decision – BBH

GBP/USD trades cautiously above 1.3310 as markets brace for today’s Bank of England meeting. A 25bps cut to 3.75% is widely expected, with a tight 5-4 vote likely, while guidance signaling gradual further easing could pressure the pound on crosses, BBH FX analysts report.

USD holds firm as markets eye November CPI – BBH

The US Dollar (USD) steadied near yesterday’s highs as investors focus on today’s November CPI release. Fed Governor Waller’s dovish comments highlight that policy rates remain above neutral, keeping the door open for future easing despite sticky inflation around 3% y/y, BBH FX analysts report.