1421 GMT - Sterling looks at risk of further falls after the Bank of England signalled less caution over cutting interest rates, TD Securities analysts say in a note. The BOE delivered a highly anticipated 25 basis-point rate cut Thursday but two members surprisingly backed a larger 50 basis-point reduction. Investors have now trimmed long sterling positions--bets on the currency rising--, the analysts say. However, sterling positioning remains "relatively optimistic" compared to non-dollar peers. This leaves it vulnerable to further declines. "Moreover, while U.K. does not seem to be in the obvious line of fire for Trump tariffs and can outperform the euro, it is a risk-sensitive currency and heightened uncertainty is likely to weigh on it versus the dollar." (renae.dyer@wsj.com)
(END) Dow Jones Newswires
February 06, 2025 09:21 ET (14:21 GMT)
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