Sterling falls against euro but rises against dollar

Sterling fell against the euro on Wednesday, breaking a seven-day winning streak, as the euro gained 0.35 per cent to 84.33 pence. However, sterling rose 0.38 per cent against a weakening dollar, reaching $1.33535.

The euro’s rise marked a halt to its decline from mid-April levels, with analysts suggesting the 84-pence level offers strong support.

Rabobank’s Jane Foley noted that sterling’s potential for further gains against the euro remains limited unless there’s a notable improvement in UK economic growth data. British GDP data, due on Thursday, could provide more clarity, but forecasts point to sluggish growth for 2025.

The pound’s rise against the dollar came as weaker-than-expected US consumer inflation data dampened the greenback, strengthening expectations for Federal Reserve easing.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama