Sterling Could Rise Further Vs Euro as ECB Expected to Cut Rates Before BOE

1501 GMT – Expectations that the European Central Bank will cut interest rates before the Bank of England could continue lifting the pound against the euro, Rabobank senior currency analyst Jane Foley says in a note. She points to this week’s below-forecast eurozone inflation data and Bank of England governor Andrew Bailey’s comments that it is premature to consider interest-rate cuts. Rabobank favors selling EUR/GBP rallies. “On the assumption that the market maintains the expectation that BOE rate cuts will lag those of the ECB, we expect sterling to find a little additional support in the coming months.” EUR/GBP falls to an 8-week low of 0.8600 on Friday, according to FactSet. ([email protected])