1246 GMT - Sterling could weaken gradually versus the euro if the Bank of England accelerates interest-rate cuts, with recent data suggesting U.K. economic growth might slow, MUFG Bank says. "Previously we had assumed the first quarter next year would be when the pace of cuts picked up but we have now moved that forward to the fourth quarter this year," MUFG analysts say in a note. Against the dollar, the U.K. currency should still rise, albeit at a slower pace, due to more aggressive Federal Reserve rate cuts, they say. MUFG expects sterling to fall versus the euro, lifting EUR/GBP to 0.85 by the second quarter, from 0.8335 currently; but forecasts GBP/USD will rise to 1.3530, from 1.3289 currently. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
October 02, 2024 08:46 ET (12:46 GMT)
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