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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.
By Stefano Rebaudo Oct 16 (Reuters) — Sterling was on track for a third consecutive weekly gain against the euro as the single currency remained under pressure following the French bond selloff at the turn of the month, with investors closely watching UK economic data and the fiscal trajectory. The pound hit its highes