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2026-11-02 17:52:28
[Standing Pound Remains Stable, Institutions Say Rate Hike Expectations Provide Support] ⑴ ING Bank stated that the pound's performance is relatively strong, supported by the market's belief that high energy prices leave the Bank of England with no choice but to raise interest rates on Thursday, with a 25 basis point increase to 4.00% seemingly inevitable. ⑵ The institution pointed out that unexpectedly positive economic data, seemingly positive UK fiscal policy, and improving relations between the UK and the EU also appear to be helping the pound. ⑶ The institution mentioned that speculators still hold a considerable amount of short positions in the pound, suggesting that the pound's relative strength may continue. ⑷ The institution stated that the euro has fallen nearly 4% against the pound in just over a month, experiencing a rapid and significant move, and may subsequently consolidate. However, given that high energy prices may keep expectations of rising UK policy rates until early next year, and the French budget issue remains unresolved, it is premature to expect a significant low for the euro against the pound.
