Analyst: The pound rose to a three-week high against the euro, as market sentiment slightly improved and investors felt somewhat relieved by the UK Spring Statement on Tuesday without any surprises. Analysts at Monex Europe stated in a report that UK Chancellor of the Exchequer Rishi Sunak emerged unscathed after releasing his Spring Statement on Tuesday. They noted that this partially explained the excellent performance of the pound and helped to reduce market expectations of an interest rate cut in the UK. However, this resilience of the pound seems unjustified. They mentioned that just like Europe, the UK is vulnerable to potential energy price spikes caused by conflicts in the Middle East, while political risks in the UK still exist. The euro fell to a low of 0.8684 against the pound. The pound rose by 0.1% against the US dollar, reaching 1.3364 US dollars.
The pound rose to a three-week high against the euro, as market sentiment rebounded slightly and investors felt somewhat reassured by the UK Spring Statement on Tuesday. Analysts at Monex Europe stated in a report that UK Chancellor Rachel Reeves was essentially unscathed after releasing her Spring Statement on Tuesday. They said this partly explained the pound's strong performance and helped to reduce market expectations of an interest rate cut in the UK. However, this resilience of the pound seems unjustified. They noted that like Europe, the UK is vulnerable to rising energy prices caused by conflicts in the Middle East, and political risks still exist in the UK. The euro fell to a low of 0.8684 pounds. The pound rose 0.1% against the US dollar, to $1.3364.
Latest
