1111 GMT – ING expects the euro to rebound against sterling from the second quarter as eurozone money markets are “considerably overestimating” the likely size of European Central Bank interest-rate cuts, says currency analyst Francesco Pesole in a note. Meanwhile, markets price in U.K. monetary easing in 2024 of around 15 basis points less than in the eurozone and U.S., he says. “A deterioration in economic conditions in the U.K. will ultimately warrant substantial BOE rate cuts,” Pesole says, adding that ING estimates a 100 basis-point reduction. EUR/GBP could remain weaker in the near term, however, Pesole says. EUR/GBP trades at 0.8603, having hit a three-week low of 0.9585 on Tuesday, according to FactSet. (jessica.fleetham@wsj.com)

Dollar’s Direction Looks Uncertain Ahead of Data

1112 GMT – The U.S dollar’s direction continues to look uncertain as markets await further economic data releases, particularly U.S. inflation data on Thursday, for clues on the likely timing of interest-rate cuts, Bas Kooijman, CEO and asset manager of DHF Capital says. “Traders could remain cautious ahead of the release of U.S. inflation data tomorrow as they could continue to gauge the potential next moves of the Federal Reserve,” he says in a note. Market pricing on the likelihood of a U.S. interest-rate cuts in March has been moderating and could alter further with new data coming in, he says. The DXY dollar index falls 0.2% to 102.408. (emese.bartha@wsj.com)

Read more: The Wall Street Journal