1222 GMT - Sterling could stay relatively robust versus the euro, supported by investors' pricing of rapid interest-rate rises by the Bank of England, ING strategists say in a note. High energy prices have caused investors to raise expectations of BOE rate rises to tackle energy-price driven inflation. Markets fully price in two BOE rate hikes in 2026, with the first one expected by July, LSEG data show. Until the BOE communicates that it will hike by less than the European Central Bank, it seems as though the euro/sterling exchange rate "can linger a lot longer in the middle of a 0.86-0.88 range", the strategists say. The euro weakens 0.1% against sterling to 0.8632 pounds. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
May 05, 2026 08:22 ET (12:22 GMT)
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