Pound Stalls as Gilt Yields Soar, ECB Rate Hike Looms

The Pound to Euro exchange rate has remained under pressure at the end of the week, struggling to recover from two-month lows just above 1.1620.

The pair attempted to stabilise around the 1.1630-1.1650 area but sentiment towards the Pound remains fragile as investors continue to monitor UK bond yields and fiscal risks.

UBS maintains a constructive stance on the Pound, viewing sterling positively due to improving confidence in UK assets and a more fiscally credible political backdrop.

The UK 10-year gilt yield ended Friday close to 5.14%, having surged to 5.294% earlier in the week, its highest level since 2007.