Forex Today: Investors brace for BoE and ECB policy decisions, US inflation data

On December 18, investors are bracing for the decisions from the Bank of England (BoE) and the European Central Bank (ECB). The market is particularly focused on the direction of interest rates held by these central banks. The upcoming inflation data could trigger significant movements in the dollar, euro, and pound, depending on the results. In anticipation of these major events, traders are adjusting positions and strategizing. Additionally, upcoming economic indicators will play a crucial role in determining the direction of the relevant currencies. Geopolitical risks and other economic factors are also critical to consider, contributing to increased market volatility. A rate hike by the BoE could lead to a strong reaction in the pound, while the ECB's decision will similarly affect the euro. Investors must manage risks while taking these factors into account.