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At 2.00 am ET Wednesday, the Office for National Statistics is set to publish UK consumer and producer prices for December. Inflation is seen rising to 0.5 percent from 0.3 percent in November.
Ahead of the data, the pound advanced against its major counterparts.
The pound was worth 141.68 against the yen, 1.2125 against the franc, 1.3654 against the greenback and 0.8897 against the euro at 1:55 am ET.