Sterling Could Fall Even if BOE Stays Cautious -- Market Talk

Dow Jones
2025/06/13

1430 GMT - Sterling looks set to weaken even if the Bank of England remains cautious about interest-rate cuts, Danske Bank analyst Kirstine Kundby-Nielsen says in a note. The BOE is likely to keep rates unchanged on June 19, in line with consensus forecasts and market pricing, and reiterate a gradual approach to future rate cuts, she says. Sterling should show a muted reaction to the meeting. "More broadly, we stay negative on sterling." Elevated uncertainty and a positive correlation to a negative dollar environment favor a weaker sterling. Tentative signs of a weaker U.K. economic growth outlook also present a sterling headwind. Danske expects the euro to rise to 0.87 pounds in six to 12 months from 0.8510 currently.(renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

June 13, 2025 10:30 ET (14:30 GMT)

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