Sterling Steady as Markets Await ECB Rate Decision and U.S. Inflation Data

Currency markets remain cautious as investors await key events in the coming days. The European Central Bank's expected interest-rate increase and U.S. inflation data are being closely watched, with sterling holding near recent ranges against both the euro and dollar.

The ECB is expected to raise rates by a quarter point to 2.5% on Thursday, with traders also pricing in another increase by the end of the year and seeing an 80% chance of a third rise by March.

By contrast, the Bank of England is not expected to raise rates next week, with markets pricing in only two increases between now and March.