- Main headlines in play (00:00).

- Overview of market sentiment & charts at the EU open (00:35).

- Bitcoin plunges amid El Salvador trouble (3:38).

- Wrap of major headlines from overnight in Asia (7:07).

- UK Govt to raise taxes to trim pandemic budget deficit (8:55).

- Fed's Bullard reiterates his hawkish stance (11:47).

- US Senator Manchin only backs a smaller $1trl spending plan (12:54).

- 50% chance of a new cyclone developing in the Gulf of Mexico (15:06).

- Main calendar event today with eyes on JOLTs, BoC meeting & Fed's Williams speech (15:46).

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EUR/USD stays on the back foot and trades near 1.0400 following the earlier recovery attempt. The holiday mood kicked in, keeping action limited across the FX board, while a cautious risk mood helped the US Dollar hold its ground and forced the pair to stretch lower. 

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GBP/USD approaches 1.2500 on renewed USD strength

GBP/USD approaches 1.2500 on renewed USD strength

GBP/USD loses its traction and trades near 1.2500 in the second half of the day on Monday. The US Dollar (USD) benefits from safe-haven flows and weighs on the pair as trading conditions remain thin heading into the Christmas holiday.

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Gold hovers around $2,610 in quiet pre-holiday trading

Gold hovers around $2,610 in quiet pre-holiday trading

Gold struggles to build on Friday's gains and trades modestly lower on the day near $2,620. The benchmark 10-year US Treasury bond yield edges slightly higher above 4.5%, making it difficult for XAU/USD to gather bullish momentum.

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Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025. 

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Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

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