Pound Set for Biggest Weekly Rise Against Euro

The British pound is poised for its most significant weekly gain against the euro in months, as fears grow over the fiscal stability of heavily indebted eurozone nations. This shift has weakened confidence in the single currency, boosting sterling in the process.

However, the pound is facing its third consecutive weekly decline against the US dollar. The dollar has gained strength following the Federal Reserve's more aggressive stance in mid-September.

Prime Minister Andy Burnham has reignited debate over the UK's future relationship with the European Union. Burnham, a staunch supporter of remaining in the EU during the 2016 referendum, has suggested the UK should explore options for rejoining the bloc.

Markets are likely to react positively to such a move, as Brexit has long been seen as a drag on the pound's long-term prospects.