1408 GMT - Sterling is likely to strengthen against the euro this year as the European Central Bank should lower interest rates by more than the Bank of England, Bank of America forex strategist Kamal Sharma says in a note. U.K. economic growth remains constrained by structural factors but is still likely to outperform Europe, he says. Even if the BOE accelerates rate cuts, this might not weaken sterling if it supports growth and eases concerns about fiscal policy challenges. The prospect of improved U.K.-EU relations under the Labour government could also support sterling. BofA expects EUR/GBP to fall to 0.80 by the fourth quarter of this year form 0.8264 currently. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
February 27, 2025 09:08 ET (14:08 GMT)
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