​EBC Markets Briefing | Pound nears one-month high; Disney turbocharged by Zootopia 2

Sterling traded near its highest levels in a month on Tuesday as the dollar remained under pressure on data showing US factory activity contracted for the ninth straight month in November.

The head of Britain's fiscal watchdog resigned after the agency inadvertently released key details of the government's annual tax and spending budget last week before finance minister announced them in parliament.

Big investors broadly welcomed the tax-raising budget that gives Reeves more leeway to meet her fiscal targets, but they warned it may not be enough if growth falters because tax hikes are due to kick in later.

On average, over the last 25 years, December tends to be the second-strongest month of the year for the pound, with a gain of 0.28%, behind top month April, according to LSEG data.

Money markets show traders are placing a 90% chance of a cut from the BOE later in December. The UK boasts one of the highest interest rates among developed nations with an inflation rate higher than 3%.

The US has announced a new trade deal with the kingdom that includes zero tariffs on pharmaceutical and medical products in exchange for the UK spending more on medicines.

Sterling retreated from the resistance at 50 SMA, and the death cross pattern signaled a dire outlook. As such it may well dip below $1.3185 in the upcoming sessions.

Asset recap

As of market close on 1 December, among EBC products, Walt Disney shares led gains after "Zootopia 2" hopped to the top of the global box office in a big weekend for family-friendly films.

RTX business segment, Pratt & Whitney, recently secured a contract to provide ongoing support for F-35 propulsion systems. Still it saw a significant pullback after a torrid rally in 2025.

The Nikkei index slid after comments from the BOJ chief brought a December rate hike into focus. Japanese government bonds slumped, with the two-year yield rising to its highest level since 2008.

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