Sterling hits 3-week high against euro on Monday

The pound sterling reached a three-week high against the euro on Monday following France’s parliamentary elections, which point towards a hung parliament and potential political gridlock in the eurozone’s second-largest economy.

In the UK, new Finance Minister Rachel Reeves is set to deliver her first major speech, promising tough decisions to spur economic growth, including measures to boost infrastructure and private investment.

Since Labour’s decisive victory last week, the pound has gained 0.5 per cent against the euro. The Bank of England (BOE) is scheduled to meet on August 1, with markets currently estimating a 63 per cent chance of a rate cut due to easing inflation and a stable economy.

BoE’s Monetary Policy Committee member Jonathan Haskel is expected to address inflation in a key speech later today.

Attribution: Reuters.