Sterling Hits 16-Month High Against Euro on French Risks, BOE Rate Bets
Sterling rose to a 16-month high against the euro, reflecting French civil unrest and fiscal risks alongside expectations the Bank of England could raise rates. Swap markets have priced around 105 basis points of tightening, the report says.
Sterling climbed to its highest level against the euro in 16 months, as French civil unrest and fiscal risks coincided with expectations that the Bank of England could raise interest rates. “Swap markets’ BOE rate expectations have remained elevated in recent weeks, with around 105 basis points of tightening priced…