1124 GMT - Sterling could receive a boost if the Bank of England provides any hints that the market's interest rate cut expectations are overdone, Ebury economist Enrique Diaz-Alvarez says in a note. The market is pricing in 90 basis points of rate cuts for the rest of 2025, according to LSEG. It will be difficult for the BOE to meet these expectations and the central bank will "likely wish to maintain optionality," he says. In addition, sterling should benefit from closer U.K.-EU ties under the Labour government and the U.K.'s relatively low exposure to U.S. tariffs. Sterling rises 0.4% to $1.3353. The euro falls 0.3% to 0.8485 pounds. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

May 06, 2025 07:24 ET (11:24 GMT)

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