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Pound rises against euro as EUR/GBP hits fresh year-to-date lows

MUFG attributes Sterling strength to intensifying euro-zone fiscal concerns and expects a November Bank of England rate hike to support the pound.

Reported · Written up by our desk · Major Pairs

MUFG analyst Lee Hardman said the British pound has rallied sharply versus the euro as euro-zone fiscal concerns intensify, pushing EUR/GBP to fresh year-to-date lows, according to FXStreet.

Hardman added that while UK fiscal risks exist, they are viewed as less acute than in France, which has helped limit downside pressures on Sterling.

FXStreet also noted that expectations for a Bank of England rate hike in November are supporting the pound’s outlook, helping counter concerns around UK fiscal conditions.

In the broader currency backdrop, FXStreet reported AUD/USD trading just above 0.6950 as traders weigh Middle East developments and risk sentiment, with a separate view that hawkish US monetary signals and higher US bond yields could keep the US dollar supported.

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