1259 GMT - Sterling's outperformance against the euro partly reflects a larger shift in U.K. interest-rate expectations compared to the eurozone, Monex Europe's Nick Rees says. The market is now pricing in little chance of any further Bank of England rate cuts this year, having previously expected two cuts, LSEG data show. For the European Central Bank, the market is pricing in a 25 basis-point rate rise by year-end after previously expecting unchanged rates this year. "Our sense is that it is easier to push back easing expectations than to price in renewed hiking, favoring the pound in this scenario," Rees says. The euro falls to a four-week low of 0.8672 pounds, LSEG data show. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

March 06, 2026 07:59 ET (12:59 GMT)

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