Live Updates > Live Update Details
2026-02-17 23:01:42
[Pound Sterling May Fall Further Against Euro Due to Weaker Growth Outlook] Danske Bank analyst Kirstine Kundby-Nielsen said in a report that the pound may weaken further against the euro due to weaker growth prospects in the UK compared to the eurozone. She stated that the UK's tightening fiscal policy, while the eurozone is pursuing fiscal expansion, has exacerbated the pound's decline. Danske Bank expects the Bank of England to cut interest rates again in April and November, although it sees the risk of an earlier rate cut. In contrast, the bank expects the European Central Bank to keep interest rates unchanged throughout 2026 and 2027. "We forecast the euro to rise to 0.89 pounds within 6-12 months," Kundby-Nielsen said. The euro rose to a four-week high of 0.8744 pounds after weak UK employment data was released.
