Sterling Rises to 2-Week High Against Euro After BOE Holds Rates Steady
1141 GMT – The U.K. budget on Wednesday presents a bigger risk to sterling compared to the Bank of England's decision at 1200 GMT, Convera strategist George Vessey says in a note. The BOE is unlikely to stoke a major market reaction as a decision to leave interest rates unchanged is fully priced in, he says. There also isn't enough in U.K. data to warrant a dramatic shift in the BOE's guidance, he says. The budget might have a larger impact as U.K. Treasury Chief Rachel Reeves could cut spending, raise taxes or risk unnerving the U.K. government bond market, he says. As such, sterling's short-term outlook is skewed to the downside, although global uncertainties 'make for a low conviction.' (renae.dyer@wsj.com)
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