1244 GMT - U.K. political concerns could continue to weigh on sterling even if the Nov. 26 budget is well-received by markets, Deutsche Bank forex strategist George Saravelos says in a note. Avoiding negative surprises in the budget would in isolation help sterling to recover, he says. However, lingering political risks won't allow for a full removal of fiscal risk premium. These risks include a leadership challenge for U.K. Prime Minister Keir Starmer. "The uncertainty effect and the possibility of a successor who puts less emphasis on fiscal discipline could see the risk premium extend back out again." The euro earlier reached a two-and-a-half-year high of 0.8865 pounds, according to LSEG, and Deutsche Bank forecasts 0.8800 by year-end and 0.9000 by mid-2026.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

November 14, 2025 07:44 ET (12:44 GMT)

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