1544 GMT - Sterling could rise slightly against the euro in 2025 as the Bank of England is expected to cut interest rates more gradually compared to the European Central Bank, Convera analysts say in a note. Yield differentials still favor further sterling strength versus the euro, although gains should be limited, they say. Sterling faces headwinds from concerns about stagflation--weak growth combined high inflation--as well as recent fiscal worries. However, the euro faces its own challenges with lacklustre growth, political woes in Germany and France and weak demand from China. Holding above 1.20 will be key for GBP/EUR to build on its gains over the past two years. It last trades up 0.1% at 1.1998. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
February 13, 2025 10:44 ET (15:44 GMT)
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