Euro Soars Against Pound Amid ECB Decision Jitters

The Euro has rallied against the British Pound for six consecutive days, reaching last week's highs at 0.8645 on Thursday.

The Sterling remains weak as investors wait to see how the new cabinet will fund its spending pledges, with concerns about fiscal stability growing.

The soft UK inflation figures released on Wednesday have dampened expectations of a Bank of England interest rate hike anytime soon, while the Euro's firm tone is awaiting the European Central Bank's monetary policy decision.

Commerzbank analysts expect the ECB to keep its hand for now but are open to further tightening later in the year, with September as a potential target for an interest rate hike to 2.50%.