FTSE 100 live: Pound maintains decline after worst day against the euro since 2022

Yesterday’s weakening of the pound and the increase in bets on future interest rate cuts by the BOE erased the optimistic view of the pound’s prospects, which had reached a near consensus in the markets.

“The best days of the pound’s growth may be behind us,” said Valentin Marinov, head of Group-of-10 currency strategy at Credit Agricole. “The pound still looks overbought and a bit expensive compared to the dollar and euro.”

Swissquote’s Ipek Ozkardeskaya said the bullish sterling narrative was driven by a more cautious BOE and a “surprisingly strong” UK economy in the first half. Now, she added, “it looks like they’re both in danger.”

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