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Danske Bank analysts note that EUR/GBP ended the year around 0.845 and today’s final release of PMI manufacturing for December should not be a big market mover for the GBP.

Key Quotes

“With likely limited political news ahead of the UK’s departure from the EU on 31 January to drive the GBP, focus will likely shift to the Bank of England and whether or not it will cut at its meeting later this month.”

“In that sense, the upcoming data releases, not least the monthly GDP estimate for November due out on Friday next week, are key to follow. As we expect the Bank of England to cut, given we expect data to come out weaker than the Bank of England does, we could see a move higher in EUR/GBP this month.”