The ECB and BoE are expected to announce their decision on interest rates. The dollar pulled back some ground, after a better-than-expected private employment report was used as an indicator for the non-farm payroll report.

GBP
The pound came under pressure after poor data releases. These showed that industrial production output and manufacturing output fell against an expected increase. The UK Treasury also announced tax increases of about £2 billion in its pre-budget report.

USD
Anticipation seems to be building around the dollar ahead of the non-farm payroll report. The dollar managed to gain some ground against the pound and euro after the ADP employment report showed that US companies added 158,000 jobs in November.

EUR
The euro eased back against the dollar and gained slightly against the sterling as the market awaits the policy announcement from the ECB. The ECB is expected to raise rates by 25bp and this move seems to be fully priced into the market.

JPY
The yen managed to hold on to its gains, as Bank of Japan officials continued with their hawkish comments. Board member Kiyohiko Nishimura said the bank could lift rates even if its views were not that of the financial markets.

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