Sterling on track for biggest daily rise vs euro in months
FXB•Sterling was on track for its biggest daily rise against the euro since mid-July, with the euro down 0.41% to 84.60 pence, its lowest level in almost three months.
1. Euro falls against sterling
The euro was on track for a sixth straight daily loss against sterling on Monday, falling 0.41% to 84.60 pence, its sharpest decline since July 15 and lowest level in almost three months. Concerns about France’s fiscal outlook and its ability to rein in its budget deficit weighed on the single currency.
2. Sterling support and risks
Sterling edged higher against a strong dollar, supported by the British government’s commitment to fiscal discipline and a more constructive approach to the European Union. The pound has also risen since early last week after comments by Bank of England Governor Andrew Bailey and Deputy Governor Dave Ramsden supported expectations for tighter monetary policy. Analysts said markets had yet to turn their attention to the October 28 UK budget.
