0906 GMT - Any comments from the Bank of England at Thursday's rate announcement about risks stemming from fiscal tightening in November's U.K. budget could weaken sterling, Monex Europe analysts say in a note. This would potentially resurrect doubts over the sustainability of the U.K.'s public finances, they say. The BOE is expected to leave interest rates unchanged this week but will issue new quarterly economic and inflation forecasts. "We look for slower growth, lower inflation and a broadly weaker labor market than seen in the Office for Budget Responsibility's forecasts on which the government's spending plans are predicated," the analysts say. Sterling rises 0.1% to $1.3698. The euro trades steady at 0.8659 pounds. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

February 02, 2026 04:06 ET (09:06 GMT)

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