The British pound was little changed against the dollar and the euro on Monday, hovering near recent highs as subdued holiday trading limited market moves and left investors with few

catalysts until the new year.

Sterling edged up 0.07% against the U.S. dollar to trade at $1.3509, remaining just below the three-month peak it touched late last week. Trading volumes were thin as many global financial centres remained lightly staffed following the Christmas holiday, contributing to muted price action across major currency pairs.

Against the euro, the pound was similarly steady, reflecting a broader pause in foreign exchange markets as traders await fresh economic data and clearer signals on interest rate policy in early January. With no major UK economic releases scheduled and central banks firmly in blackout periods, investors showed little appetite to take new positions.

The pound’s recent resilience has been underpinned by expectations that UK interest rates will remain higher for longer compared with some major peers, offering support despite ongoing concerns about economic growth. The dollar, meanwhile, has eased slightly in recent sessions after a strong run earlier in the quarter, allowing sterling and other major currencies to stabilise.

Market participants said any decisive moves in the pound are likely to be deferred until liquidity improves in the new year, when attention will turn to upcoming inflation data, labour market figures and guidance from central bank officials.

For now, analysts expect sterling to continue trading within a narrow range, holding close to recent highs as year-end positioning and holiday conditions keep volatility in check.