1037 GMT - Sterling faces further losses if the Bank of England leaves interest rates unchanged in a decision at 1200 GMT but boosts market expectations for future rate cuts, Commerzbank's Michael Pfister says in a note. The BOE is expected to vote 7-2 to leave rates unchanged. "If the vote is closer than expected, the market will likely bring forward its expectations of a rate cut and the pound will suffer," he says. The BOE also releases its first set of projections since November's U.K. budget. These forecasts could pave the way for more significant rate cuts, he says. Sterling falls to a two-week low of $1.3553, LSEG data show. The euro rises to a one-week high of 0.8693 pounds. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

February 05, 2026 05:37 ET (10:37 GMT)

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