MARKET OUTLOOK - Sterling Hits 1.5-Week High Against Euro

Forex - ING analyst Chris Turner stated that the Pound has risen to its highest level against the Euro in a week and a half due to the likelihood of a confidence vote facing the French government because of its fiscal tightening plans. Far-right National Rally leader Jordan Bardella threatened on Monday to bring down the government if it does not meet his party's budget demands. Turner remarked, "French politics seems to have acted as a catalyst to pull EUR/GBP back below 0.83." With expectations that the Bank of England will lower interest rates more cautiously compared to the European Central Bank, EUR/GBP is likely to remain under pressure. EUR/GBP fell 0.4% to 0.8270, approaching last month's low of 0.8260.