Sterling Likely to Rise Against Euro if ECB Rate Cuts Outpace BOE -- Market Talk
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)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
No relevant data is available