1028 GMT - A widely-expected interest-rate cut by the Bank of England on Thursday would unlikely trigger a major reaction in sterling, ING's Francesco Pesole says in a note. The market is pricing in a 92% chance of a 25 basis-point rate cut, according to LSEG. That means the euro may stabilize around 0.8500 for now, Pesole says. However, the euro's "greater exposure to potential positioning adjustments means the risks remain skewed to the downside for the euro versus sterling." The euro looks overbought and overvalued and could fall in the absence of a further unwinding of dollar reserve positions, he says. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

May 06, 2025 06:28 ET (10:28 GMT)

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