The British Pound is expected to receive a boost in November as the Bank of England is anticipated to begin raising interest rates. This forecast from MUFG comes as investors compare the UK’s fiscal situation to France’s challenges, contributing to Sterling’s recent strength against the Euro.
The Pound to Euro exchange rate closed near €1.1814 on Friday, marking a roughly 0.9% increase since the start of October. The UK government faces pressure to present a stable budget on 28 October to avoid unsettling bond investors. Lee Hardman, MUFG’s senior currency analyst, noted on 8 October that the Pound has strengthened significantly against the Euro due to a broader sell-off of the Euro.