The euro was mildly stronger against the dollar after the currency pair was fairly range-bound around the 1.0750 mark on Monday, Danske Bank Research said.
The range-bound trade was “in anticipation of the release of U.S. CPI later today” as well as Wednesday’s Fed meeting, Danske said.
Sterling edged lower after data showed U.K. wage growth slowed slightly more than expected to 7.3% in the three months to October, but it benefits from expectations that the Bank of England will cut interest rates later than the Fed or ECB, MUFG said.
The BOE will be encouraged by the data but wages remain elevated, it said.
“The higher starting point for inflation in the U.K. and less evidence so far of a slowdown in core and service inflation gives the BOE’s pushback against rate cut expectations more credibility amongst market participants.”