1000 GMT - Sterling's recent gains against the euro are unlikely to last as the Bank of England could deliver another interest-rate cut earlier than markets expect, ING's Francesco Pesole says in a note. The BOE could cut rates again in March, leading to a gradual fall in sterling versus the euro in coming months, he says. Markets are not fully pricing in another rate cut until June, LSEG data show. "[The euro-sterling exchange rate] has settled below 0.8700, which is an area of moderate short-term undervaluation according to our models."The euro falls 0.1% to 0.8655 pounds, having earlier reached a one-week low of 0.8649. Sterling rises 0.1% to $1.3475.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

January 13, 2026 05:00 ET (10:00 GMT)

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