1239 GMT - Sterling could continue its struggle to keep pace with the euro in the near-term due to Germany's fiscal spending plans and the prospect of U.K. tax rises later this year, Rabobank forex strategist Jane Foley says. The turnaround for the euro has been the impulse into the eurozone from the change to Germany's debt brake, she says. "That's the primary motivating factor." That means sterling will underperform the euro, particularly if the U.K. faces more tax hikes in autumn. If U.K. growth gets hit from a potential downturn in the global economy due to U.S. tariffs, U.K. Treasury chief Rachel Reeves won't be able to meet her fiscal targets without creating more revenue from higher taxes, she says. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
April 16, 2025 08:39 ET (12:39 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.