0816 GMT – Sterling hasn’t moved a great deal against the euro over the past month, but a relatively weaker performance of the U.K. economy than that of the eurozone will eventually weigh on sterling, say analysts at Danske Bank Research. “We expect the U.K. economy to perform relatively worse than the euro area and expect relative growth outlooks and central bank pricing to weigh on sterling.” Danske expects EUR/GBP to rise to 0.89 in six to 12 months, compared with 0.8620 currently. For now, however, the global investment environment suggests there’s little “meaningful difference” between sterling and the euro, the analysts say. (emese.bartha@wsj.com)

Pound Falls as U.K. Wage Growth Slows

0806 GMT – Sterling weakens after U.K. data showed wages continuing to slow from elevated levels, with average pay growth excluding bonuses decelerating sharply to 6.6% in the three months to November from a revised 7.2% in the period to October. This should reassure the Bank of England that risks of more persistent inflation in the U.K. are easing, says MUFG currency analyst Lee Hardman in a note. “It will encourage the U.K. rate market to price in earlier and deeper BOE rate cuts in the year ahead, weighing on the pound.” GBP/USD falls to an 11-day low of 1.2662 after the data, from around 1.2685 beforehand, according to FactSet. EUR/GBP rises to 0.8622 from around 0.8609 beforehand. (jessica.fleetham@wsj.com)

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