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Sterling extended its rally to a 16-month high against the euro. French debt concerns weighed on the euro, while markets priced a 90% chance of a 25-basis-point Bank of England rate rise in November, according to LSEG.
Sterling reached a 16-month high against the euro as markets anticipate interest rate hikes from the Bank of England. Concerns over French debt also contributed to the move by casting doubt on further near-term tightening by the European Central Bank.