Sterling Rises vs Euro on BOE Rate-Rise Bets, French Debt Worries
Dow Jones
Oct 07
1015 GMT - Sterling rises to a 16-month high against the euro as markets bet on the Bank of England raising interest rates while French debt concerns cast doubts over further near-term policy tightening by the European Central Bank. BOE policymaker Catherine Mann said Tuesday that inflation currently above the 2% target appears to have become embedded in the economy. Sterling continues to draw support from the prospect of rate rises, Monex Europe analysts say in a note. However, the fiscal backdrop remains sterling's key vulnerability ahead of the October 28 U.K. budget, they say. LSEG data show markets pricing an 81% chance of the BOE raising rates 25 basis points in November. The euro falls to as low as 0.8445 pounds.
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