1028 GMT - Sterling rises to its strongest level in five months against the euro ahead of a decision by the Bank of England on Thursday. The BOE is widely expected to leave interest rates on hold. Recent data show a strengthening U.K. economy, which has encouraged market participants to push back the timing of when they expect the next interest-rate cut, MUFG's Lee Hardman says in a note. "Without an immediate catalyst to lower rates further, the BOE are likely to remain cautious over lowering rates further at the start of this year," he says. U.K. money markets aren't fully pricing a rate cut until July, LSEG data show. The euro falls to a low of 0.8613 pounds, LSEG data show. (jessica.fleetham@wsj.com)

(END) Dow Jones Newswires

February 04, 2026 05:28 ET (10:28 GMT)

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